The board of directors of Finsoft Financial Investment Holdings Limited announced that, based on the information currently available to the Board, the Group expects to record a decrease in net loss of not less than 45% for the year ended 31 December 2021, as compared to a net loss of approximately HKD 50.3 million recorded for the year ended 31 December 2020. The decrease in net loss was primarily due to decrease in the provision of impairment loss on loans and interest receivables provided for fiscal year 2021 as there was no material change in the credit status and credentials of the loans and interest receivables of the Group as at 31 December 2021 and 31 December 2020 using the Group's expected credit loss model, and so no material impairment loss was recognized for fiscal year 2021. The provision of impairment loss on loans and interest receivables in an aggregate amount of approximately HKD 46.5 million was recognized in fiscal year 2020.

The provision of impairment losses on loans and interest receivables are non-cash items and do not have an immediate impact on the Group's cash flows and operations.