Geotech Holdings Ltd. is expected to record a net loss in the range between approximately HKD 11.5 million to HKD 14.5 million for the year ended 31 December 2021, as compared to the net loss of approximately HKD 28.1 million for the year ended 31 December 2020. Such expected decrease in net loss is mainly attributable to the combined effect of the factors includes the recognition of reversal of impairment loss on other receivables of not less than approximately HKD 5.0 million due to the recovery from a subcontractor during the year ended 31 December 2021, while impairment loss on other receivables of approximately HKD 15.0 million was recognised for the year ended 31 December 2020; the one-off government grant from (a) the Employment Support Scheme under the Anti-epidemic Fund launched by the Government of the Hong Kong Special Administrative Region in respect of the outbreak of novel coronavirus and (b) the Construction Industry Anti-epidemic Fund provided by the Government of HKSAR which aims to support the construction industry against the Outbreak, amounting to an aggregate sum of approximately HKD 6.9 million was recognised for the year ended 31 December 2020 but no such income was being recognised for the year ended 31 December 2021; and a reduction in gross profit of the Group mainly due to two loss making construction and engineering contracts in relation to (i) loss incurred as a result of extra construction costs employed for a slope and site formation works project in public sector in dealing with ongoing geological difficulties which was first identified in the financial year ended 31 December 2020; and (ii) substantial loss incurred in the variation works concerning a public sector project under the roads and drainage works category, although such issue is still under negotiation between the Group and the customer.