The board of directors of LH Group Limited informed the shareholders of the Company and the potential investors that, based on preliminary review of the unaudited consolidated management accounts of the Group for the year ended 31 December 2020 and currently available information, the Group is expected to record a profit attributable to the Shareholders of not less than HKD 130 million for the year 31 December 2020, as compared to a net loss attributable to the Shareholders of approximately HKD 11.2 million for the year ended 31 December 2019. Apart from the above, the Group's profit attributable to the Shareholders for the Year being higher than that of 2019 was also attributable to the following reasons: various proactive cost-control measures adopted by the Group to maintain its business and financial stability and, such measures included but not limited to, negotiating with landlords and vendors for the most favorable terms in relation to contracts and stringently optimizing staff costs and other operating expenses; decrease in provision for impairment of property, plant and equipment and right-of-use assets as compared with that of 2019; net gain from lease modification in relation to HKFRS 16 recorded in 2020; and receipt of COVID-19 related government grants and subsidies in 2020.