China Machinery Engineering Corporation provided earnings guidance for the year ended December 31, 2020. The company announced that based on the preliminary assessment of the recent unaudited consolidated management accounts of the Group and the information currently available to the Board, the Group's net profit for the year ended December 31, 2020 is expected to decrease by 40% to 55% compared with the same period in 2019. The aforesaid decrease in net profit is mainly attributable to a certain level of impact from the outbreak of the COVID-19 pandemic on the market conditions. The impact of the Pandemic on the execution and development of complete engineering projects, especially in respect of manpower, procurement and supply of equipment and materials and funds, resulted in construction delays and increased costs. For trading and other service business, the Pandemic has caused different extent of delay in procurement, delivery and shipping, leading to a chain reaction to the interface of subsequent orders. Business disputes in certain business activities had certain impact.