FDB Holdings Limited provided unaudited consolidated earnings guidance for the year ended 31 December 2023. The Group for the year ended 31 December 2023 and information available to the Company, the Group is expected to record a net loss in the range of approximately HKD 55.0 million to approximately HKD 65.0 million for the year ended 31 December 2023, as compared to a net loss of approximately HKD 0.9 million for the year ended 31 December 2022. The net loss was primarily due to an impairment loss due to expected credit loss model, net of reversal, mainly for contract assets of approximately HKD 30.5 million during the year, which was due to the recoverability of a customer who is a mainland China developer currently undergoing debt restructuring process.

The Group has commenced arbitration against such customer since 2022 with the view to recover the same and such arbitration is still ongoing. During the year ended 31 December 2023, the number of ongoing projects has decreased and some of the ongoing project has incurred the additional costs due to unexpected delays in progress during the year. The Group therefore recorded a decrease in revenue and a net loss during the year ended 31 December 2023 as compared to a net loss for the year ended 31 December 2022.