The board of directors of SMIT Holdings Limited announced that, according to the preliminary review of the unaudited consolidated management accounts of the Group for the year ended 31 December 2020, the Group expects to record a loss of not more than USD 4,000,000 as compared to a net profit of approximately USD 12,000,000 that was recorded for the year ended 31 December 2019. The loss for the year 2020 is mainly attributable to the absence of an one-off gain on deemed disposal of the equity interests in S2C Limited of approximately USD 22.78 million completed during the year ended 31 December 2019 and the Group's continuous investment and increased research and development expenditures relating to the development of the integrated circuit smart technology business, through the Group's subsidiaries and investee companies, which requires substantial capital investment.