New Sparkle Roll International Group Limited updated earnings guidance for the financial year ended March 31, 2024. For the period, the company expected loss attributable to owners of the Company for FY2024 is approximately HKD 610 million (instead of approximately HKD 170 million as stated in the Announcement), which represents an increase of approximately 11 times as compared with that of for FY2023. The Board considers that such expected increase in loss attributable to owners of the Company was mainly attributable to (1) the decrease in revenue and gross profit of the Group by approximately 18% and 47% respectively for FY2024. Such decrease in revenue and gross profit of the Group were mainly related to the continuing weak market sentiment and keen competition in the automotive business of the Group during FY2024, with a decrease in
revenue and a significant decline in gross profit margin being expected from that business sector of the Group and impairment of inventories which mainly includes watch, jewellery and fine wine; (2) impairment of goodwill and the property, plant and equipment on auto dealership business of approximately HKD 200 million and HKD 90 million respectively, which arising from significant decrease in profits on auto dealership business; (3) fair value change on investment properties of approximately HKD 100 million; and (4) impairment of other intangible assets of film rights of approximately HKD 40 million. The information contained in this announcement is based merely on the preliminary assessment by the Board according to the information currently available, including the unaudited consolidated management accounts of the Group for FY2024 and the preliminary valuation assessments by professional valuers which have not yet been audited by the Company 's independent auditors. The Company is still in the course of preparing and finalising its annual results for FY2024 which are expected to be announced before the end of June 2024.