The board of directors of the IMS Group Holdings Limited informed the shareholders of the Company (the "Shareholders") and potential investors that based on the preliminary review of the unaudited consolidated management accounts of the Group for the six months ended 30 September 2020 (the "Relevant Period") by the management of the Group, the Group is expected to record (i) a loss of approximately HKD 0.5 million for the six months ended 30 September 2020, as compared to a profit of approximately HKD 8.8 million for the corresponding period of 2019; and (ii) a decrease in revenue for the six months ended 30 September 2020 of approximately 55.4% as compared with that of the corresponding period of 2019. The expected decrease in revenue and expected loss of the Group in the Relevant Period were primarily attributable to the following reasons: as the novel coronavirus disease ("COVID-19") pandemic continued to spread worldwide, most countries implemented temporary closure of parts of business premises and anti- epidemic policies since March 2020, causing the sales volume of the Group to decrease and thereby resulting in a decline in sales revenue of the Group; and the COVID-19 pandemic resulted in delay in resuming production, employees returning to work and supply of materials, as well as imbalance of production and increase in cost of anti-epidemic measures after the Chinese New Year, which led to a reduction in productivity and an increase in operating costs of the Group.