Power Financial Group Limited provides earnings guidance for the year ended 31 December 2022. The Group is expected to record a loss for the year ended 31 December 2022. The expected loss for the FY2022 is primarily due to the following factors: The loss on fair value changes of financial assets at fair value through profit or loss ("FVTPL") of approximately HKD 104.1 million for the FY2022 from its holding of equity securities listed in Hong Kong, which was principally in line with the dramatic slowdown of Hong Kong stock market, where the market experienced the most significant market sell-off in October 2022 since the dislocation during the Global Financial Crisis.

Hong Kong's economy, including its stock market, has been battered by the zero-Covid policy that had shut out travelers from mainland China and dampened consumer confidence. Investor concerned about rising interest rates, slowing economic growth and persistently high inflation triggered sustained bouts of selling throughout 2022. The Group is still in the course of estimating the fair value of certain suspended listed equity securities, unlisted investment funds, unlisted equity investment and investment property held by the Group as at 31 December 2022 and performing an expected credit loss allowance assessment on its loans and interest receivables in connection with its money lending business for the FY2022.

It is expected that the Group would record a loss on fair value changes of financial assets at FVTPL from its holding of unlisted equity investment with reference to the poor performance in the stock prices of comparable financial technology companies globally as of 31 December 2022.