The board of directors of Smart City Development Holdings Limited informed the shareholders of the Company and potential investors that, based on preliminary assessment of the unaudited consolidated management accounts of the Group for the six months ended 30 September 2020, the Group is expected to record a profit of not more than HKD 4 million for the six months ended 30 September 2020, as compared with a loss of approximately HKD 1 million for the corresponding period in 2019. Based on the information currently available to the Board, the profit mainly arose from an operating profit from the securities investment segment of approximately HKD 4 million for the six months ended 30 September 2020, as compared with an operating loss of approximately HKD 3 million for the corresponding period in 2019, despite a decrease in operating profit of the construction contracting and related business by approximately HKD 5 million.