The board of directors of Simplicity Holding Limited provided that the Group is expected to record a profit before tax of approximately HKD 8.2 million for the nine months ended 31 December 2020 as compared to net loss of HKD 29.6 million in the corresponding period in 2019. The Board considered that the turnaround from loss to profit was mainly attributable to (i) receipt of government subsidies under the Anti Epidemic Fund; (ii) reversal of impairment loss of interest in an associate; and (iii) decrease in staff costs as a result of implementation of control measures by the Group.