International Genius Company provided unaudited consolidated earnings guidance for the six months ended December 31, 2023. For the period, the company expects to record a 35% to 45% increase in its net loss for the six months ended 31 December 2023 (the "Period") as compared to the six months ended 31 December 2022, which was mainly due to the decrease in revenue for approximately 40% to 50% for the Period. The decrease was mainly attributable to: (i) a decrease in demand for raw materials from the downstream
companies due to the decrease in net export in traditional industries in China, like toys and plastic products production, which led to the drop of overall sales volume of raw materials; and (ii) the increase in supply of party products due to the recovery of international logistics after the pandemic, resulting in falling price from fierce competition.