Da Yu Financial Holdings Limited provided consolidated earnings guidance for the year ending 31 December 2023. For the period, Consolidated management accounts for the ten months ended 31 October 2023, owing to goodwill impairment, the Group is expected to record a consolidated net loss of approximately HKD 170 million for the year ending 31 December 2023, as compared to the profit of approximately HKD 5 million for the year ended 31 December 2022. The consolidated net loss is primarily attributable to the anticipated recognition of non-cash impairment loss on goodwill of approximately HKD 178 million for the year ending 31 December 2023.

The remaining goodwill balance will be approximately HKD 103 million after the aforesaid impairment. The corporate finance business of the Group is volatile in nature and subject to market sentiment. Given the dampened stock market condition and low activities in the capital markets in Hong Kong, such impairment of goodwill is considered necessary and adequate for the time being.

The Group wishes to emphasize that the abovementioned impairment loss on goodwill will not have any cash flow impact to the operations of the Group.