The board of directors SH Group (Holdings) Limited informed the shareholders of the Company and potential investors that, based on the preliminary assessment on the unaudited consolidated management accounts of the Group and the information currently available to the Board, the Group is expected to record a net loss of not less than HKD 8.0 million for the six months ended 30 September 2022 as compared with the net profit of approximately HKD 13.5 million for the six months ended 30 September 2021. The Group's expected net loss for the six months ended 30 September 2022 was mainly attributable to: the adoption of a more competitive pricing strategy when securing the existing projects on hand due to the intensified market competition in recent years; the increase in costs of subcontractors, transportation, equipment and materials after successful tender; and the decrease in the value of financial assets at fair value through profit or loss, which is non-cash in nature.