Quali-Smart Holdings Limited provided preliminary unaudited consolidated group earnings guidance for the six months ended September 30, 2021. For the period, the group expects to widen substantially to not less than HKD 17.0 million as compared with the consolidated net loss of the group of about HKD 3.2 million for the corresponding period ended September 30, 2020. The aforementioned expected widening in consolidated net loss is mainly driven by impacts from the ongoing global COVID-19 pandemic. The pandemic has caused significant disruptions to global logistics leading to a severe shortage in available container shipping capacity. This has led to a substantial delay in shipment of the group’s products to end-customers in overseas markets in recent months, which has led to an increase in the group’s inventory and hence the group’s storage costs. Furthermore, there has been an increase in raw material costs for plastic resin and electronic components in recent months, which, together with rising salary and utilities costs, has caused a deterioration in the gross margins of the group's Toy Business. In addition, the group recorded other income from the employment support scheme in the previous period which is absent in the current period. As a result, the group is expected to record a substantial decrease in consolidated revenues and a widening in the consolidated net loss for the current period of about 19% and 456%, respectively, when compared with the same for the previous period.