Xinji Shaxi Group Co. Ltd. provided preliminary unaudited consolidated group earnings guidance for the financial year ended 31 December 2023. For the year, the group expects the net loss attributable to the shareholders recorded by the group would be not less than RMB 75.0 million but not more than RMB 85.0 million as compared to the net loss attributable to the shareholders of approximately RMB 168.7 million recorded for the financial year ended 31 December 2022.

The board considered that the expected decrease in net loss attributable to the Shareholders for FY2023 was primarily due to a reduction in the fair value losses on investment properties held by the Group. Due to, among others, the tightened policies in the real estate sector, the two shopping malls of the Group in Shenyang, China were significantly impacted, which led to the recognition of substantial valuation losses by the Group in FY2022. However, in FY2023, with no significant changes to the market conditions affecting the real estate sector in China, property valuations have remained relatively stable, resulting in a reduction in fair value losses on investment properties recognised by the Group in FY2023 compared with that in FY2022.

Notwithstanding the above, by eliminating the effects of certain one-off or non-recurring items including the changes in fair value of investment properties and income tax expenses in relation to above reconciled items, which the Board believed are not indicators for assessing the actual performance of the Group's business, the Group's core net profit for FY2023 is expected to decrease by not more than RMB 15.0 million as compared with the core net profit of approximately RMB 94.9 million for FY2022.