Star CM Holdings Limited provided unaudited consolidated earnings guidance for the year ended December 31, 2023. For the period, the company expects to have a net loss in the range of RMB 1,600 million to RMB 1,700 million, turning from profit to loss as compared with a net profit of approximately RMB 84.6 million for the year ended December 31, 2022. Based on the information currently available to the Board, a net loss for Fiscal Year 2023 was primarily attributable to the following reasons: the Board expects that there will be a significant shrink in music copyright licensing, offline activities and other businesses of the Group in the future.

Therefore, an impairment of goodwill of approximately RMB 1,200 million is estimated to be recorded for Fiscal Year 2023; some of the Group's variety programs have incurred losses or experienced delays; and program copyrights of the Group's drama series were impaired due to aging.