The board of directors (the Director(s)) of Merdeka Financial Group Limited informed the shareholders of the Company (the Shareholders) and potential investors that the Group is expected to record a net loss of approximately HKD 4.6 million for the three months ended 31 March 2021 (the 2021 first quarter) as compared to the net profit of approximately HKD 5.0 million for the three months ended 31 March 2020. The net loss was mainly attributable to (i) the absence of reversal of impairment loss on other receivables of approximately HKD 9.0 million; (ii) the recognition of share-based payment of approximately HKD 1.0 million and (iii) a slightly decrease in gross profit of approximately HKD 1.4 million due to weak business environment caused by the outbreak of COVID-19 that the value and volume of transactions in financial services business and corporate consulting business segments was slightly reduced. Should the reversal of impairment loss on other receivables be excluded, the net loss of the Group for the three months ended 31 March 2020 would be approximately HKD 3.9 million which represented a slightly increase of the net loss of approximately HKD 4.6 million for the 2021 first quarter.