Hua Lien International (Holding) Company Limited provided unaudited earnings guidance for the year ended 31 December 2023. For the year, it is expected that the Group will record a net loss for the year ended 31 December 2023 of approximately HKD 58 million, as compared to a net loss of approximately HKD 45 million for the year ended 31 December 2022. The Board considers that the expected increase in net loss of approximately HKD 13 million of the Group during the Reporting Year as compared to the Preceding Year was principally attributable to the following: (a) an increase in finance costs of approximately HKD 25 million as a result of the approximately HKD 25 million increase in foreign exchange loss arising on translating the results and financial position of the subsidiaries when their functional currencies depreciated during the year; (b) an increase in loss of change in fair value of biological assets of approximately HKD 5 million mainly due to the decrease in area under sugarcane of approximately 600 hectares during the year by ploughing of those low yielding sugarcane area in order to for bringing fresh nutrients to the surface while burying weeds and sugarcane remains to decompose for new nutrients into the soil.

(c) an increase in gross profit of approximately HKD 1 million by reason of approximately 1% increase in gross margin through the increase in average selling prices of raw sugar and molasses during the year; (d) a decrease in administrative expenses of approximately HKD 6 million by virtue of the decrease in packaging costs involving local sales and the decrease in export-related expenses when export sales declined during the year; and (e) a decrease in other operating expenses of approximately HKD 10 million owing to the decrease of approximately HKD 10 million in write-down on inventory of spare parts for property, plant and equipment during the year.