Acme International Holdings Limited provided unaudited consolidated earnings guidance for the six months ended June 30, 2021. For the six months, the Group is expected to record a consolidated net loss of not less than HKD 73 million for the six months ended 30 June 2021 as compared to the unaudited consolidated loss of approximately HKD 24.8 million for the corresponding period in 2020. While the revenue and gross profit of the Group's BMU System business for the Interim Period recorded an increase of not less than 40% and 90%, respectively, as compared to the corresponding period in 2020, such increase could not offset the loss incurred by various works in relation to the Group's façade work business due to the reasons set out below, resulting in an increase in the consolidated net loss of the Group. The expected loss of the Group was primarily due to the combined effect of the following: (i) The Group was awarded a number of large-scale unitized curtain wall projects in 2019 and the main construction works thereof were commenced in 2020. The progress of the projects was directly impacted by the significant delay in the delivery of construction material parts by some unitized curtain wall suppliers as a result of COVID-19 pandemic. Therefore, the Group has engaged new approved suppliers to supply construction material parts for certain projects in the second half of 2020, with a view to reduce the impact brought by any delay in the supply chain. However, upon on-site inspection conducted on certain projects during the Interim Period, the Group realized that the quality of certain construction material parts for unitized curtain wall construction which were purchased from the new suppliers failed to meet the main contractor's requirements. Accordingly the Group had to incur additional subcontracting charges and material costs to replace and repair the defective construction materials, which had led to a significant loss in certain projects; (ii) a number of façade construction projects were delayed and construction plans were altered on account of the prolonged impact of COVID-19 pandemic. In order to deal with any unexpected change to the on-site arrangements initiated by any contractor and delay in progress on site while the construction was underway, the Group had to incur more subcontracting charges for maintaining sufficient manpower in construction sites during the affected period and additional storage and transportation cost for making corresponding logistics arrangements; (iii) the supply chain management of some construction material suppliers for façade work business were affected to a large extent by the prolonged impact of COVID-19 pandemic, which resulted in suppliers' delay in the delivery of construction materials. For the purpose of aligning the progress of on-going projects to its original schedule, the Group had to incur additional subcontracting charges and material costs to catch up with the construction plans; (iv) during the Interim Period the costs of various projects further increased due to the substantial increase in the purchase costs of raw materials for major construction materials (mainly aluminum, steel and glass) used in the façade work business and the appreciation of RMB; and (v) in respect of a façade construction project in Kwun Tong undertaken by the Group in 2019, the Group is still in negotiation with the contractors for the relevant amount incurred by variation orders due to the substantial modification and delay of the contracted construction plan of the third phase which involved certain variation orders, and the final amount of variation orders was uncertain at this stage. Based on the current estimation by the Board, the Group expects to record a loss of approximately HKD 33 million regarding this project for the Interim Period in accordance with the relevant accounting standards after taking into account the increase in construction material costs and subcontracting fees, as well as the additional costs arising from the delay in construction. This estimation is not finalized and subject to change as a result of further negotiation with the counterparty. The company will continue to closely monitor the development of this project and will make further announcement(s) if the Company is aware of any material development in this regard.