Power Financial Group Limited provided earning guidance for the six months ended 30 June 2022. The board of directors of the Company informed the shareholders and the potential investors of the Company that based on the information currently available to the Board, subject as mentioned below, the Group is expected to record a loss for the six months ended 30 June 2022 as compared to a profit of approximately HKD 171.6 million for the six months ended 30 June 2021. The Group considered the expected loss for the 2022 Interim Period is principally driven by a change from gain on fair value changes of financial assets at fair value through profit or loss ("FVTPL") of approximately HKD 161.0 million for the 2021 Interim Period as a result of the resumption of trading from a listed equity security during the 2021 Interim Period to a loss on fair value changes of financial assets at FVTPL of approximately HKD 19.2 million for the 2022 Interim Period from its holding of equity securities listed in Hong Kong, which was principally in line with the dramatic slowdown of Hong Kong stock market as well as the global market.

The loss on fair value changes of the financial assets at FVTPL for the 2022 Interim Period comprised of the fair value changes of each of the listed equity securities, unlisted investment funds and unlisted equity investment. It is expected that the Group would record a loss on fair value changes of financial assets at FVTPL from its holding of unlisted equity investment with reference to the poor performance in the stock prices of comparable financial technology companies globally as of 30 June 2022. It is expected that the loss on fair value changes of the financial assets at FVTPL for the 2022 Interim Period would be not less than approximately HKD 19.2 million.

The Group is still in the course of estimating the fair value of certain suspended listed equity securities, unlisted investment funds and unlisted equity investment held by it as at 30 June 2022 and performing an expected credit loss allowance assessment on its loans and interest receivables in connection with its money lending business for the 2022 Interim Period.