G.H.Y Culture & Media Holding Co., Limited provided consolidated earnings guidance for the year ended December 31, 2023. The group is expects to report a net loss for fiscal year 2023. The net loss is primarily attributable to, inter alia, the following factors: (a) the foreign exchange loss arising from the appreciation of the Singapore Dollar against the Chinese Renminbi in fiscal year 2023, mostly from the intercompany balances denominated in Singapore Dollar of the entities of the Group in the People's Republic of China (PRC) of which the financial statements are prepared in Chinese Renminbi, as the Group has significant operations in the PRC; and (b) the recognition of credit loss allowance.

Loss allowance has been measured by reference to past default experience of the debtors and an analysis of the debtors' current financial position, adjusted for factors that are specific to the debtors, general economic conditions of the industry in which the debtors operate and current and forward- looking macroeconomic factors affecting the ability of the customers to settle the receivables.