Pacific Textiles Holdings Limited provided earnings guidance for the six months ended 30 September 2023. The board of directors informed the shareholders of the company and potential investors that based on the preliminary assessment of the currently available information, the profit attributable to equity holders of the Company may decrease by approximately 49.8%, from around HKD 248.2 million for the six months ended 30 September 2022 to around HKD 124.5 million for the six months ended 30 September 2023. The downturn was caused by many factors, inter alia, mainly attributable to (i) the decrease in sales revenue by approximately 16.9%; (ii) higher fixed cost absorption arising from lower utilization of production facilities in Panyu plant; and (iii) an impairment loss of approximately HKD 10.0 million arising from the Company's investment in Teejay Lanka PLC (an associate of the Company and whose shares are listed on the Colombo Stock Exchange of Sri Lanka (the "Associate")) during the Reporting Period.

The impairment loss relates to the carrying value of the Company's investment in Associate, and is non-cash in nature and accordingly, will not have any impact on the Group's current and future cash flow and daily operations.