Hung Fook Tong Group Holdings Limited provides earning guidance for the year ended 31 December 2021. The Group expects that the profit attributable to owners of the Company for the year ended 31 December 2021 will be less than HKD 9 million as compared to that of HKD 63 million for the year ended 31 December 2020. The Board believes that the decrease in profit attributable to owners of the Company for fiscal year 2021 is mainly attributable to the following reasons: Decrease in gross profit margin, which in turn is due to: (a) increase in price in certain raw materials; and (b) appreciation of renminbi which led to the increase in production cost in plant in Kaiping City, Guangdong.

Increase in operating expenses, which is mainly due to: (a) increase in staff costs; and (b) increase in utility expenses. Increase in development costs in certain new lines of business. Significant decrease in government grants and subsidies received or receivable.