On June 11th, Grondhog announced that compared with a net loss of HKD 23 million for the year ending March 31, 2023, the group is expected to incur a loss of about HKD 45 million to HKD 55 million for the year ending March 31, 2024. The board of directors believes that the expected loss is mainly due to the following reasons: (1) the group expects revenue and gross profit to decrease by about 35% and 40% respectively, compared with revenue of about HKD 366 million and gross profit of about HKD 72 million for the same period in 2023, mainly due to the decrease in overseas market demand; (2) the group expects to recognize losses of the same amount as in 2023 for the attributable losses of the Wuxi joint venture; and (3) according to the initial draft of the valuation report prepared by independent professional valuers, the group expects to have a fair value loss on the revaluation of investment properties on March 31, 2024. The expected losses in (2) and (3) above have no impact on the group's cash flow.

Revenue and gross profit declined mainly due to the decrease in demand in overseas markets. The group expects losses similar to those in 2023 to be recognized for the attributable losses of the Wuxi joint venture, as well as a fair value loss on the revaluation of investment properties on March 31, 2024, as per the initial draft of the valuation report prepared by independent professional valuers. The expected losses in (2) and (3) above have no impact on the group's cash flow.