Lung Kee (Bermuda) Holdings Limited provided earnings guidance for the six months ended 30 June 2023. The Board informed the shareholders of the Company (the "Shareholders") and potential investors that based on the latest review of the unaudited management accounts and the information of the Group currently available to the Board, the Group is expected to record a net loss of not less than HKD 30 million for the six months ended 30 June 2023 as compared to the net profit of HKD 41 million recorded for the six months ended 30 June 2022. The anticipated turnaround of the Group's results from profit to loss is mainly due to the significant decrease of the Group's sales revenue as the significant reduction of aggregate purchase orders in the market caused by the tough business operating environment.

During the period, there are various factors such as the weak consumer sentiment amidst the outbreak of the COVID-19 pandemic for more than 3 years, the continuous trade disputes between China and the United States of America, the increase of interest rates by major economies such as the United States of America to curb inflation and the geopolitical tension in various regions, all these factors adversely affect the overall economy which slowed down global production and aggravated the tough business operating environment in which the Group operates. The significant reduction of aggregate purchase orders in the market coupled with the relatively fixed operation costs resulted in the significant decrease in the Group's revenue and the turnaround of the Group's results from profit to loss.