The board of directors of the Steve Leung Design Group Limited announced that, based on the preliminary assessment of the unaudited consolidated management accounts of the Group for the six months period ended 30 June 2022 and the information currently available to the Board, the Group is expected to record a net loss in the range of approximately HKD 30 million to approximately HKD 38 million for the Period, as compared to a net profit of approximately HKD 4 million for the six months period ended 30 June 2021. Based on the information currently available, the Board considers that the Group's weakened financial performance for the Period was mainly attributable to the following factors: decrease in revenue and gross profit margin primarily due to the (i) decrease in the number of projects awarded to the Group; and (ii) increase in the number of projects with prolonged progression and the additional costs resulting from mass lockdowns and restrictions in Hong Kong and the People's Republic of China due to the outbreak of the new wave of COVID-19 pandemic during the first half of 2022; and decrease in other income and other gains mainly due to the (i) absence of gain in fair value of financial assets subsequent to the redemption of certain investment funds and absence of gain on lease modification; (ii) decrease in tax rebate from the relevant PRC local authorities upon the decrease in net profit and relevant tax liabilities of certain PRC subsidiaries; and (iii) change to exchange loss during the Period as compared to the exchange gain during the Previous Period as a result of the depreciation of Renminbi in the first half of 2022.