New Focus Auto Tech Holdings Limited provided earnings guidance for the year ended 31 December 2023. For the period, the company expects to record a net loss in the range of approximately RMB 85 million to RMB 95 million for the period as compared to a net loss of approximately RMB 49 million for the year ended 31 December 2022. The expected significant increase in net loss was primarily attributable to the proposed recognition of an impairment loss in the range of approximately RMB 65 million to RMB 75 million on the Group's other receivables in Fiscal Year 2023.

This impairment loss reflects a decrease in the range of approximately RMB 65 million to RMB 75 million in the fair market value of the equities in two companies pledged as collaterals for those other receivables. Such decrease was mainly attributed to a decline in the market values of real properties held by these two companies resulting from an economic downturn in Mainland China, as well as the decrease in the appraised value of both the other receivables and long-term equity investments of one of these two companies.