SK Target Group Limited announced that the continuous outbreak of the COVID-19 throughout 2020 and series of anti-epidemic measures implemented causing substantial and adverse impacts on company's Japanese catering business in Hong Kong. In light of the unpredictability on how the COVID-19 will evolve and the future Hong Kong government policy on controlling the spread of the COVID-19 to be implemented, the board of directors of the Company considers that it is no longer commercially attractive to engage in the Japanese catering business in Hong Kong. The Board believes that it is in the best interests of the Company and its shareholders as a whole to cease its Japanese catering business in Hong Kong at this stage so that the Group will be able to allocate more resources and management efforts to other business activities of the Company and/or to explore new lines of businesses with an aim to provide better returns for the shareholders of the Company.