Gelonghui June 23 丨Alpha Enterprise (00948.HK) announced that compared to the loss of approximately HK$31.6 million for the year ending March 31, 2022, the Group expects a sharp reduction in losses for the year ending March 31, 2023, and has recorded a level close to balance of payments or no more than HK$2 million.

The anticipated improvement in the Group's financial performance is mainly due to the combined effects of: (i) the increase in gross profit of the Group's milk powder and baby food business segment in 2023, mainly due to the Group's procurement target of placing orders with Bubs Australia or its subsidiaries for the period from July 1, 2021 to June 30, 2022, based on a purchase discount of approximately HK$25.4 million for the purchase of 9,541,620 shares of Bubs Australia shares (“Bubs Shares”) at zero cost; (ii) the Group The significant reduction in losses in the business segment providing mobile solutions was due to a further reduction in operations in 2023; and (iii) the unrealized loss of approximately HK$13.6 million due to changes in the fair value of financial assets included in profit and loss at fair value in 2023 was confirmed by measuring the fair value of Bubs shares on March 31, 2023, in accordance with the Group's accounting policies.