The board of directors of SFK Construction Holdings Limited informed the shareholders of the Company and potential investors that, based on the preliminary assessment of the information currently available to the Board, including the unaudited consolidated management accounts of the Group for the year ended 31 December 2021, the Group is expected to record a consolidated net profit ranging from approximately HKD 10 million to HKD 20 million for the Year as compared to a consolidated net loss of approximately HKD 18.97 million for the year ended 31 December 2020. Based on the information currently available, the Board believes such turnaround from loss to profit was mainly attributable to the following factors: The improvement in overall gross profit margin of the Group for the Year as compared to that of the year ended 31 December 2020 as a result of the relative control of the novel coronavirus (COVID-19) epidemic in Hong Kong and the improvement of market conditions in Hong Kong. A decrease in finance cost for the Year as compared to that for the year ended 31 December 2020 due to the improvement of the liquidity position and the decrease in bank borrowings of the Group during the Year.