Brainhole Technology Limited provided unaudited consolidated earnings guidance for the six months ended June 30, 2020. The company group is expected to record a net loss in excess of HKD 20.0 million as compared to the net profit of approximately HKD 1.9 million for the six months ended 30 June 2019. Based on the information currently available, the Board considered the net loss for the six months ended 30 June 2020 was primarily attributable to the following reasons: (1) the decrease in revenue generated from semiconductor business, due to the outbreak of coronavirus disease ("COVID-19") which has led to a reduction in the global economic activities, and resulted in slowdown in orders from customers; (2) the public health measures put in place to prevent the spread of the COVID-19 pandemic has caused temporary suspension of production of semiconductors for about one month after Chinese New Year. The anti-epidemic measures such as the quarantine, social distancing and other pandemic containment measures have also reduced the Group's productivity and incurred incremental costs to the Group; and (3) the increase in labour costs driven by labour shortage for the manufacture of semiconductors and additional costs incurred for new quality assurance system to cope with customers' new technological standard and requirements on semiconductors.