China Star Entertainment Limited provided earnings guidance for the year ended 31 December 2022. For the year, the Group is expected to record a consolidated loss between HKD 90 million to HKD 100 million for the year ended 31 December 2022 as compared to the corresponding figure of HKD 156,515,000 for the year ended 31 December 2021. Based on a preliminary review on the unaudited consolidated management accounts of
the Group for the year ended 31 December 2022 and information currently available to the Board, the decrease in loss is mainly attributable to: (i) substantial decrease by approximately HKD 127 million for recognition of loss arising on change in fair value of financial assets at fair value through profit or loss from HKD 152,413,000 for the year ended 31 December 2021 which mainly represented financial assets stated at fair values
held by the Group included equity securities listed in Hong Kong, call option embedded in loan to a director and investment in films; and (ii) decrease by approximately HK$4 million for other operating expenses from HKD 24,977,000 for the year ended 31 December 2021; and was partially offset by the following two factors (i) increase by approximately HKD 24 million for administrative, marketing and distribution expenses from HKD 75,221,000 for the year ended 31 December 2021; and (ii) decrease by approximately HKD 54 million for other revenue and other income from HKD 102,903,000 for the year ended 31 December 2021 which mainly included loan interest income.