The board of directors of Kam Hing International Holdings Limited informed the shareholders of the Company and potential investors that, based on a preliminary review of the unaudited consolidated management accounts of the Group for the year ended 31 December 2023 and assessment of the information currently available, the Group is expected to record a net loss attributable to the owners of the Company in the range of about HKD 135 million to HKD 155 million for the FY2023. The Board considers that the net loss attributable to owners of the Company for the FY2023 is primarily attributable to: the pace of recovery of the demand in the textile and garment industry in the European and American markets which was slower than expected; the decline in sales volume and gross profit margin caused by a number of factors such as geopolitical issues and intense market competition; several one-time expenses such as one-off tax payment, severance costs and disposal of assets resulting from streamlining the Company's structure respectively; and a significant increase in net interest expenses during the FY2023, all of which exacerbated the loss for the FY2023. The Board is optimistic about the positive impact that the implementation of streamlining measures and reduction of total loan balances in the end of year 2023 will have on the Group's performance in the year of 2024.