Riverine China Holdings Limited provided preliminary unaudited consolidated group earnings guidance for the year ended 31 December 2023. For the year, the group expects consolidated net loss will be not more than approximately RMB 81.0 million, as compared with the net profit of approximately RMB 24.8 million for the year ended 31 December 2022. The consolidated net loss is mainly due to the following reasons: Based on the principle of prudence, an impairment of approximately RMB 25.5 million has been made for the other intangible assets arisen from the acquisition of the Group's urban sanitary service segment.

The substantial decrease in revenue and gross profit of the urban sanitary service segment of the Group, which was resulted from the poor post-pandemic macroeconomic environment and the reduction of government expenditure. Based on the principle of prudence, a further impairment of approximately RMB 48.3 million has been made and has been reflected as the loss in fair value of investment properties. The decrease in profits of sublease services, which was resulted from the temporary redecoration of investment properties as the Group could not rent out the properties during redecoration period.

At the same time the Group was still obliged to bear the lease liabilities and redecoration costs for the year ended 31 December 2023. Notwithstanding the above, the business conditions and operating results of the Group's main business, that is property management services remained positive and kept increasing and the Group also achieved healthy net operating cash inflow. Nevertheless, the aforesaid factors that led to profit decline had a more significant impact and resulted in the Group's consolidated net loss for the year ended 31 December 2023.