Gogox Holdings Limited provided earnings guidance for the six months ended June 30, 2023. For the period, the company expects to record (1) a revenue in the range of approximately RMB 330 million to approximately RMB 380 million for the six months ended June 30, 2023, as compared to a revenue of approximately RMB 349 million for the same period in 2022; and (2) a loss attributable to the equity holders of the Company in the range of approximately RMB 620 million to approximately RMB 710 million for the six months ended June 30, 2023, as compared to a loss attributable to the equity holders of the Company of approximately RMB 1,046 million for the same period in 2022. The decrease in loss attributable to the equity holders of the Company was mainly due to the following factors: a decrease in share-based compensation expenses of approximately RMB 570 million primarily attributable to the certain share options granted to individuals under the Company's share incentive plan adopted on August 18, 2021 had been vested in 2022; a decrease in loss from changes in fair value of the Company's convertible redeemable preferred shares of approximately RMB 310 million due to the conversion of the preferred shares into ordinary shares upon listing of the Company on June 24, 2022; and partially offset by an impairment of goodwill of approximately RMB510 million, primarily due to the increasingly challenging market conditions faced by the Group's Chinese mainland, Hong Kong and overseas operations.

The Group's goodwill mainly arose from the acquisition of subsidiaries of GoGo Tech Holdings Limited in 2017. For details of such goodwill, please refer to "Financial Information - Discussion of Selected Items from the Consolidated Statements of Financial Position - Assets - Goodwill" in the prospectus of the Company dated June 14, 2022. Given that the overall post-pandemic economic recovery fell short of expectation, the growth in revenue and earnings of the Group's business for the first half of 2023 did not meet the original growth expectation.

In light of the above, after taking into account the changes in macro-economic environment and the increasingly challenging market conditions in intra-city logistics industry faced by the Company in Chinese mainland, Hong Kong and overseas markets, the management of the Company adopted a conservative forecast of future revenue growth for the Group's enterprise services and platform services with the expectation that the recoverable amounts of such cash generating units will decline and become lower than the carrying amounts, resulting in an impairment loss on goodwill.