According to the announcement from the Futu SG, shareholder of Wisdomcome gp (08079), the group is expected to incur a deficit of no more than about 115 million Hong Kong dollars as of the fiscal year ending on March 31, 2024, compared to the deficit of about 54.1 million Hong Kong dollars in the same period of 2023; The expected revenue during the period is about 53.3 million Hong Kong dollars, a decrease of about 25.3% compared to last year.

The announcement stated that the main reason for the loss was the rise in interest rates in the market for lending business leading to a decline in demand for loans; and continuing to adopt a cautious attitude towards loan evaluation and approval processes; many new competitors with similar business models in the retail and wholesale business have led to fierce competition in the market, resulting in a reduction in market share in the wholesale business; and an increase in the fair value loss of financial assets that are measured at fair value.