The board of directors of the Leeport (Holdings) Limited informed the shareholders of the company (the "Shareholders") and potential investors that, based on preliminary review and analysis of the unaudited consolidated management accounts of the Group for the six months ended 30 June 2021 and other information currently available to the Board, the Group is expected to record a loss attributable to owners of the company ranging from approximately HKD 27.0 million to approximately HKD 33.0 million, as compared to the loss of approximately HKD 7.5 million recorded in the corresponding period in 2020, representing an increase of approximately 260% to 340%. The expected increase in loss was mainly due to the reclassification adjustment of exchange reserve in the cumulative amount of approximately HKD 26.3 million from equity to profit or loss in the financial statements of the Group on liquidation of a subsidiary of the company in the Macao Special Administrative Region of the People's Republic of China namely Leeport Macao Commercial Offshore Limited during the six months ended 30 June 2021, in compliance with the relevant laws of the Macao SAR. The loss of approximately HKD 26.3 million in consequence of the said reclassification adjustment is a non-cash item, which is solely a one-off accounting treatment and has no impact on the business operation and cash position of the Group.