Sincere Watch (Hong Kong) Limited provided preliminary unaudited consolidated group earnings guidance for the year ended 31 March 2023. For the year, the group expects to record a net loss of not less than approximately HKD 275.6 million as compared to a net loss of approximately HKD 156.8 million for the year ended 31 March 2022. Such expected net loss is primarily attributable to the increase in provision for slow moving inventories, provision for impairment loss on property, plant and equipment and provision for legal and professional fee.

The expected increase in net loss for fiscal year 2023 as compared to the net loss as previously disclosed in the Announcements is primary attributable to the increase in provision for slow moving inventories in the amount of approximately HKD 39.2 million, increase in provision for impairment loss on property, plant and equipment in the amount of approximately HKD 25.3 million and increase in provision for legal and professional fee in the amount of approximately HKD 25.5 million.