The board of directors of North Asia Strategic Holdings Limited announced that, based on the preliminary assessment of the unaudited management account, the Group is expected to record a consolidated loss ranging from HKD 50 million to HKD 60 million in the third quarterly results of the Group for the nine months ended 31st December 2022 as compared to the consolidated profit of HKD 56,479,000 for the corresponding period of 2021, the main reasons for which are as follows: (1) the Group recorded an exchange loss of about HKD 29 million mainly due to the depreciation of both Japanese Yen and Renminbi against Hong Kong dollar during the nine months ended 31st December 2022 (while the Group recorded an exchange gain of about HKD 15 million during the corresponding period of 2021); (2) due to the semiconductor chips shortage and sluggish demand in global mobile phone market from the start of 2022 till the end of 2022 and strict pandemic control policy causing lockdowns in major cities in China to combat the Omicron outbreak, the Group's customers, mainly mobile phone manufacturers in China, had experienced disruptions in component production and logistics that affected most of their vendor's 2022 Second Quarter to Fourth Quarter shipments, both in China and worldwide. The Group has noted that its customers have been delaying or scaling down their manufacturing facilities acquisition plans which contributed to a significant drop in orders to the Group during the first nine months of 2022 and thereafter. This has led to a reduction in completion of orders during the nine months ended 31st December 2022 and consequently a decrease in the revenue of the Group's hi-tech distribution and services division by about 35% during the nine months ended 31st December 2022 as compared to the corresponding period of 2021 while the operating costs do not reduce at the same rate as the revenue.