ST International Holdings Company Limited provided unaudited consolidated earnings guidance for the six months ended June 30, 2021. For the six months, the Group is expected to record a net profit of approximately HKD 6 million for first half 2021 as compared to a net profit of approximately HKD 1.2 million for the six months ended 30 June 2020. The expected increase in the net profit is primarily due to (i) the increase in revenue and gross profit; and (ii) the decrease in administrative and other expenses. Increase in Revenue and Gross Profit: The company expects to record an increase in revenue of not less than HKD 22 million for first half 2021, representing an increase of more than 50% as compared to a revenue of HKD 42.1 million for first half 2020 as the business of the Group is recovering from the adverse impact brought by COVID-19. The gross profit is expected to increase by not less than HKD 4 million, representing an increase of more than 30% as compared to a gross profit of HKD 13.4 million for first half 2020. However, the gross profit margin for first 2021 is expected to decrease by more than 4.0% points as a result of the increase in the cost of raw materials and the more competitive pricing of the products offered by the Group under the challenging market environment. Decrease in Administrative and Other Expenses: The company expects to record a decrease in administrative and other expenses of approximately HKD 1.2 million for first half 2021, representing a decrease of more than 11.5% as compared to HKD 10.7 million for first 2020 primarily due to (i) a decrease in staff wages of approximately HKD 1.5 million by reason of delayed distribution of discretionary bonus until the second half of 2021; (ii) a decrease in entertainment, staff welfare and training expenses of approximately HKD 0.9 million as a result of cost control measures; and (iii) partially offset by an increase in depreciation of the machineries of approximately HKD 1.2 million.