Automated Systems Holdings Limited provided earnings guidance for the year ended 31 December 2021. Based on the information currently available to the Company, the Board wishes to clarify that the heading of the announcement shall be read as profit warning, and to further inform the shareholders of the Company and the potential investors that, despite the Group anticipates that the adjusted EBITDA for the year of 2021 will increase
not less than 10% as compared to last year, it is expected that the Group will record a net loss of approximately HKD 10.0 million for the year ended 31st December 2021 as compared to a net profit of approximately HKD 856.1 million for the year of 2020 under the adverse impact of the following non-operating factors (as disclosed in the Announcement): as compared with the one-off gain (approximately HK$832.4 million) recorded last year arising from the disposal and spin-off of Grid Dynamics International Inc.; the Group's interests in an associate, Grid Dynamics Holdings Inc. ("GDH"), were diluted by exercise of warrants of GDH; and the interests of the Group were diluted upon vesting of shares and exercise of share options under the incentive plan of GDH adopted after the spin-off and listing. As disclosed in the Announcement, the dilution effects of (ii) and (iii) above will be recorded as loss on deemed disposal of partial interests in associates (approximately HK$170 million in total) in accordance with the Hong Kong Accounting Standards, but there is no impact on the performance of the core businesses and cash flow of the Company.