China Star Entertainment Limited provided earnings guidance for the six months ended 30 June 2023. For the period, the company expects to record a consolidated loss between HKD 78 million to HKD 88 million for the six months ended 30 June 2023 as compared to the corresponding figure of HKD 35,943,000 for the six months ended 30 June 2022. Based on a preliminary review on the unaudited consolidated management accounts of the Group for the six months ended 30 June 2023 and information currently available to the Board, the increase in loss is mainly attributable to a substantial increase in finance costs amounted to approximately HKD 76 million (Six months ended 30 June 2022: HKD 27,634,000, included HKD 26,565,000 capitalised to stock of properties) due to increase in interest rates of the Group's bank loan in the period and increase in marketing, selling and distribution expenses from HKD 1,277,000 for the six months ended 30 June 2022 as more marketing expenses were incurred in new business multi-media and entertainment business operations.

The effect was partially offset by increase in gross profit generated from property development and investment operations and multi-media and entertainment business operation and decrease in recognition of loss arising on change in fair value of financial assets at fair value through profit or loss amounted to approximately HKD 7 million as compared to HKD 23,380,000 for the six months ended 30 June 2022.