The board of directors of Starlight Culture Entertainment Group Limited informed the shareholders of the Company (the "Shareholders") and potential investors that, based on its preliminary review of the unaudited management accounts and the information of the Group currently available to the Board, the Group is expected to record an unaudited consolidated net loss attributable to owners of the Company of approximately HKD 28.5 million for the year ended 31 December 2020, compared to an audited consolidated net profit attributable to owners of the Company of approximately HKD 98.2 million for the year ended 31 December 2019. The Board considers that such decrease in profit/increase in loss was mainly attributable to the decrease in revenue of approximately HKD 245.6 million resulting in decrease in gross profit of approximately HKD 174.0 million, and attributable to the net increase in impairment losses of approximately HKD 55.8 million, which were partly offset by the decrease in operating expenses, administrative expenses and finance costs totaling approximately HKD 50.8 million and by the decrease in income tax expenses of approximately HKD 52.8 million.