The board of directors of the 1957 & Co. (Hospitality) Limited wishes announced that, based on the Board's preliminary review of the unaudited consolidated management accounts of the Group for the three months ended 31 March 2022 and other information currently available, the Group is expected to record a substantial decrease in revenue in the range of approximately HKD 36.0 million to HKD 38.0 million for the three months ended 31 March 2022 as compared to the corresponding period in 2021 which led to a significant increase in net loss in the range of approximately HKD 16.0 million to HKD 19.0 million for the three months ended 31 March 2022 as compared to the corresponding period in 2021. The Board considered that the substantial decrease in revenue and significant increase in net loss as mentioned above was mainly attributable to the tightened social distancing measures due to the fifth wave of the COVID-19 pandemic since early 2022.

Certain measures had significant adverse impact on the operation of the restaurants and the business of the Group, such as dine-in services ban from 6 p.m. to 4:59 a.m. the next day and number of diners per table capped at two, four and six in Types B, C and D mode of operation respectively during the period from 7 January 2022 to 23 February 2022 and further reduced the maximum number of diners per table to two regardless of the modes of operation until 20 April 2022. The abovementioned measures which had an adverse effect on the financial of the Group have been partially offset by the government subsidies of approximately HKD 2.2 million received by the Group during the period.