Gelonghui, March 12 | Crazy Sports (00082.HK) announced that the Group expects to record a consolidated net loss of no more than HK$30 million for the year ended 31 December 2023, while the consolidated net profit for the year ended 31 December 2022 is approximately HK$18 million. The expected consolidated net loss is mainly due to the following reasons:
(i) The Group's other earnings for the year are expected to be lower than the previous year, and revenue from the sale of subsidiaries was confirmed to be HK$42.7 million due to the liquidation of exchange earnings last year. It is anticipated that there will be no confirmed proceeds from the sale of subsidiaries during the year. Furthermore, dividend income from financial investments is expected to be reduced from HK$34.1 million last year to HK$2.8 million in that year;
(ii) The Group's revenue for the year is expected to decrease by approximately 25% to 30% compared to the previous year, mainly due to reduced earnings from sports and leisure games. In view of the lack of major sporting events and uncertain prospects for the game industry this year, the Group actively adjusted the game business distribution strategy to avoid allocating too much resources to large-scale updates and new game launches. Additionally, due to the decline in players' spending power, the overall revenue of co-published games during the year was affected.
Notwithstanding the above information, the Board believes that the Group's overall financial, operating and business conditions (including cash flow) remain healthy. The Group is strengthening its focus on developing sports knowledge payment platforms and new sports lottery retail services specially designed for sports enthusiasts, and is increasing resources to introduce advanced data analysis and artificial intelligence technology. Facing the rapid development of China's sports industry, the Group will continue to actively implement development plans in key strategic areas in the digital sports industry to achieve long-term sustainable growth through its professional and innovative technological advantages. The Board is optimistic about the Group's long-term growth potential.