Sterling Group Holdings Limited provided preliminary unaudited consolidated group earnings guidance for the six months ended 30 September 2023. For the period, the group expects to record a net loss of not less than HKD 7 million. Before recording an expected credit loss recognised on trade and other receivables (ECL) of approximately HKD 15 million, the Group expects to record a net profit of about HKD 8 million for the Period as compared to the net profit of approximately HKD 11.3 million for the six months ended 30 September 2022.

The net loss of the Group for the Period was principally due to: the provision of ECL of approximately HKD 15 million for one of the Group's trade debtors from the United States of America (the U.S. Customer). On 28 June 2023, the U.S. Customer filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy code, further details of which are set out in the Company's inside information announcement dated 4 July 2023; and slight decrease in revenue and higher finance costs during the Period.