According to the Zhitong Finance App, Hongguang Semiconductor (06908) announced that the Group expects to achieve losses of approximately RMB 155 million to RMB 164 million for the year ended December 31, 2023. Compared with the net loss for the year ended December 31, 2022 (the previous year), the net loss for the year ended December 31, 2022 (previous year) was approximately RMB 101 million.

According to the announcement, the main reasons why this year's losses will increase compared to last year's losses are: impairment losses on intangible assets, property, plant and equipment confirmed this year; and losses due to the elimination of financial liabilities confirmed this year. Losses arising from the extinct financial liabilities stem from the difference between (a) the closing price of the company's shares on the day of completion of the debt repayment agreement dated May 31, 2023, and (b) the issue price of the company's shares that the company agreed to allocate and issue to the group's creditors in accordance with the debt repayment agreement to fully settle the debt owed to the creditors.