Khoon Group Limited provided consolidated earnings guidance for the year ended June 30, 2021. For the period, the Group expects to record a net profit after tax for the year ended 30 June 2021 of approximately SGD 30,000, which represents an approximately 99.1% reduction as compared with that for the year ended 30 June 2020 of approximately SGD 3.7 million. Based on the information currently available, such expected decrease in the profit was mainly attributable to: The unprecedented global outbreak of the Coronavirus Disease 2019 ("COVID-19") which has continuously hit the Singapore construction sector by a double whammy of labour shortage and cost escalations and leads to the drop of the Group's gross profit margin for the year ended 30 June 2021. Majority of the construction projects in Singapore face delays in completion by approximately 6 to 12 months or even longer. Delayed projects lead to higher costs as the Group still needs to pay for the project staff costs and equipment rental which have significantly affected both the margins and progress of the Group's electrical engineering works. With the outbreak of COVID-19 in India in March 2021, Singapore Government issued travel ban on those with recent travel history to India and its neighbouring countries including Bangladesh, Nepal and Sri Lanka, which further worsen the labour crunch in the Singapore construction sector since those countries are where most of the migrant workers come from. The restricted supply of workers has led to delay in project schedules and higher labour costs. Due to the disruption in global supply chain under the COVID-19 pandemic, construction material costs including concrete, copper, steel and metals, etc have escalated as well, causing a significant increase in material costs during the year ended 30 June 2021.