The board of directors of Crazy Sports Group Limited informed shareholders of the Company and its potential investors that, based on the information currently available to the Company including the unaudited consolidated management accounts of the Group for the year ended 31 December 2023, the Group is expected to record a consolidated net loss of not more than HKD 30 million, as compared to a consolidated net profit of approximately HKD 18 million for the year ended 31 December 2022. Such expected consolidated net loss is mainly due to the reasons below: the Group's other gains for the Year is expected to decrease compared to Last Year. A gain from disposal of a subsidiary of HKD 42.7 million was recognised in the Last Year due to realised exchange gains.

No gain from disposal of subsidiary is expected to be recognised during the Year. Besides, dividend income from financial investment is expected to decrease from HKD 34.1 million in the Last Year to approximately HKD 2.8 million during the Year; and the Group's revenue for the Year is expected to decrease approximately by the range of 25% to 30% compared to Last Year, which is mainly due to decrease in revenue from sports and leisure games. In view of the absence of major sports events in the Year and uncertain prospect of game industry, the Group has proactively adjusted its publishing strategy for the gaming business in order to avoid excessive resources allocation on large-scale updates and new game launches.

Besides, due to the decline in player spending power, the overall revenue of co-published games was affected during the Year.