Readboy Education Holding Company Limited provided unaudited consolidated earnings guidance for the year ended 31 December 2023. The board of directors informed the shareholders of the Company and the potential investors that, based on the preliminary review of the unaudited consolidated management accounts of the Group for the year ended 31 December 2023 and other information currently available to the Board, the Group is expected to record: (i) a consolidated loss attributable to the owners of the Company ranging from approximately RMB 68 million to RMB 78 million for the year ended 31 December 2023 as compared to a consolidated profit attributable to the owners of the Company of approximately RMB 5.2 million for the year ended 31 December 2022. Such expected loss is primarily attributable to: product sales were negatively impacted to a certain extent as the domestic economy was affected by the international environment; the underperformance in sales of products including personal student tablets, wearable products and digital and smart classroom solution products due to lower market demand as certain consumers were still prudent in consumption under the "Double Reduction Policy and in the post-pandemic era; change in value of investments in the financial assets as disclosed in the Company's 2022 annual report during the reporting year, resulting in approximately RMB 19.1 million loss recognised from changes in fair value of financial assets at fair value through profit or loss for the year ended 31 December 2023; and the increase in research and development expenses for the year ended 31 December 2023 in view of the intensified competition in the industry which resulted in the product homogeneity offered by different players.

The Company therefore increased its investment in the development of new products during the year for enhancing its long-term competitiveness.