The board of directors of China Fordoo Holdings Limited informed that based on its preliminary assessment of the Group's unaudited consolidated management accounts for the six months ended 30 June 2020 and the information currently available to the Board, it is expected that the Group would record a loss from continuing operations attributable to the shareholders of the Company for the six months ended 30 June 2020 of not less than approximately RMB 65 million as compared to the loss from continuing operations attributable to the shareholders of the Company of approximately RMB 46 million for the six months ended 30 June 2019. The expected increase in loss is mainly attributable to the combined effects of (i) the significant decline in Group's revenue and gross profit due to the outbreak of the COVID-19 pandemic which led to a significant decline in the demand for the Group's products; and (ii) an increase in provision for trade receivables for the six months ended 30 June 2020 as such trade receivables are long aged and considered impaired.