The board of directors of the SEM Holdings Limited informed the shareholders of the Company and potential investors that based on a preliminary assessment of the unaudited consolidated management accounts of the Group for the year ended 31 December 2020 and the information currently available to the Company, it is anticipated that the Group will record a net loss of not less than MOP 19.0 million for the year ended 31 December 2020 as compared to a net profit of approximately MOP20.3 million for the year ended 31 December 2019. Based on the unaudited information currently available to the Company, the expected decline in the Group's results for the year ended 31 December 2020 is mainly attributable to the Group's decline of revenue by more than MOP 130 million as a result of, among others, the following reasons: unprecedented outbreak of COVID-19 epidemic and the subsequent quarantine measures imposed by the Macau Government, majority of the Group's on-going projects were delayed and the overall amount of contract works were reduced during the year ended 31 December 2020; and suspension of an on-going major project since the third quarter of 2020 because the project employer of which intended to conserve more available cash under the COVID-19 pandemic environment.