Smartac International Holdings Limited provided earnings guidance for the six months ended 30 June 2021. The Group expects to record a net loss of approximately RMB 61.7 million for the six months ended 30 June 2021, as compared to a net loss of approximately RMB 16.5 million recorded for the corresponding period in 2020, an increase of approximately 3.7 times. The Board considers that the expected loss was mainly attributable to the provision for inventory of approximately RMB12.3 million and the impairment losses of the Group's trade and other receivables of approximately RMB29.8 million for the six months ended 30 June 2021 (Nil and nil for the corresponding period in 2020), which was mainly due to the continuance of the novel coronavirus (``COVID-19'') pandemic that affected the overall consumption atmosphere and repayment abilities of the Group's debtors. However, the Board believes the impact caused by the outbreak of the COVID-19 pandemic to be temporary and the Group will continue to capture opportunities to grow in the second half year of 2021.