Wing On Company International Limited provided consolidated earnings guidance for the six months ended 30 June 2023. For the period, the company expects profit attributable to Shareholders of approximately HKD 272.8 million for the six months ended 30 June 2023 as compared to a loss of HKD 106.4 million for the six months ended 30 June 2022. Such substantial increase is mainly attributable to the gain of HKD 93.0 million from the Group's investment portfolio for the six months ended 30 June 2023 as compared to the loss of HKD 190.4 million for the corresponding period in 2022, and the unrealised net valuation gain of approximately HKD 13.8 million on the Group's investment properties for the six months ended 30 June 2023 as compared to the net valuation loss of HKD 51.9 million for the corresponding period in 2022.

The Group also expects to record an underlying profit attributable to Shareholders, which excludes the unrealised net valuation gain on the Group's investment properties and related deferred tax thereon, for the six months ended 30 June 2023 in the amount of approximately HKD 262.4 million as compared to an underlying loss of HKD 54.8 million for the six months ended 30 June 2022. The Board believes that the expected net increase in the Group's underlying profit attributable to Shareholders for the period is primarily due to the following factors: Investment in trading securities: The Group is expected to record a gain from its investment portfolio, which was mainly the unrealised gain due to remeasurement to fair value of trading securities, of approximately HKD 93.0 million for the six months ended 30 June 2023 as compared to a loss of HKD 190.4 million for the six months ended 30 June 2022. At 30 June 2023, the Group's investment portfolio amounted to HKD 1,833.2 million (at 31 December 2022: HKD 1,673.3 million).

(2) Property investments: The Group's property income is expected to be approximately HKD 192.2 million for the six months ended 30 June 2023 as compared to HKD 218.9 million for the six months ended 30 June 2022. The operations of the Group's properties in Hong Kong remained fairly stable during the period. However the performance of the Group's properties in Melbourne, Australia was adversely affected by the reduced occupancy rate and weak tenant demand for office space.

During the six months ended 30 June 2023, the Group wrote-off a total sum of HKD 11.7 million for the irrecoverable rents and landlord's lease incentives relating to an insolvent tenant. (3) Department stores operation: The Group's department stores operation is expected to record a profit of approximately HKD 4.7 million for the six months ended 30 June 2023 as compared to a loss of HKD 19.2 million for the six months ended 30 June 2022. With the gradual resumption of social and economic activities in Hong Kong, the Group was able to maintain its normal department stores operating hours throughout the period under review and achieved a growth in sales revenue and operating profit.

During the six months ended 30 June 2022, the Group's department stores operation recorded wage subsidy from the Government's 2022 Employment Support Scheme of HKD 8.2 million.