The board of directors WAC Holdings Limited informed the shareholders of the Company and potential investors that, based on the preliminary assessment of the Group's unaudited consolidated management accounts for the nine months ended 31 December 2021 and information currently available to the Board, the Group is expected to record a net loss not exceeding HKD 3.0 million for the Third Quarterly Period as compared to a net profit of approximately HKD 6.7 million for the nine months ended 31 December 2020. The Group is expected to record a loss was mainly attributable to the increase in cost of services resulting from increase in the sub-consulting charges incurred for the projects that required sub-consulting services undertaken by the Group; increase in staff costs included in cost of services; and (c) payment of discretionary bonus to directors; absence of one-off government subsidies received from Hong Kong SAR Government under the Employment Support Scheme; and impairment loss recognized in respect of the interest in an associate, for the Third Quarterly Period.