New Fire Technology: Affected by FTX, the group's annual net loss is expected to increase to HKD 280 million

ChainCatcher news, the Hong Kong-listed company New Fire Technology has issued a profit warning for the year ending September 30, 2023. According to a preliminary review of the group's unaudited consolidated management accounts for the year ending September 30, 2023, and the information currently available to the company, it is expected that the group will record a net loss of not less than approximately HKD 280 million for the year ending September 30, 2023, compared to a net loss of approximately HKD 200 million for the year ending September 30, 2022.

The announcement indicates that the increase in net loss is mainly due to (1) the inability to withdraw cryptocurrency assets from the cryptocurrency exchange FTX, resulting in an impairment loss provision of approximately HKD 86 million; (2) one-time severance expenses related to the restructuring of company personnel, with costs related to the cost management plan amounting to approximately HKD 15 million. However, these accounts have not yet been reviewed or audited by the company's auditors, and New Fire Technology is still finalizing its full-year performance for the year ending September 30, 2023. The company expects to announce its consolidated financial results for the year ending September 30, 2023, by the end of December 2023.