On June 11th, GR Daily reported that, based on the preliminary evaluation of the unaudited financial data for the period ended March 31, 2024 and the current information available to the board of directors, Sino Splendid expected to record a net loss of not less than HKD 10 million for the fiscal year ended March 31, 2024, while it recorded a net profit of approximately HKD 43.7 million for the fiscal year ended March 31, 2023.

The board of directors believes that the net loss in fiscal year 2023/2024 is mainly attributable to the following factors: (i) due to intense market competition in fiscal year 2023/2024, the revenue and gross margin of the distribution business unit of the group's content delivery network authorization were reduced; (ii) due to intense market competition in fiscal year 2023/2024 compared to fiscal year 2022/2023, the revenue and gross margin of the group's system integration solution business were reduced; and (iii) as the expected net increase in impairment losses under the credit loss model is expected, the net other losses for fiscal year 2023/2024 are expected to increase compared to fiscal year 2022/2023. (iv) The reduction in other income in fiscal year 2023/2024 compared to fiscal year 2022/2023 is mainly due to the government subsidies received under the "Employment Support Scheme" launched by the Hong Kong government in fiscal year 2022/2023, but no relevant subsidies were received in fiscal year 2023/2024.