China Oriental Group Company Limited provided earnings guidance for the year ended 31 December 2020. The Group expects to record a decrease in net profit for the year ended 31 December 2020 by approximately 45% to 65%, as compared with the net profit of the Group for the year ended 31 December 2019. Based on the information available to date, such expected decrease in net profit of the Group for the Relevant Year is mainly attributable to the combined effects of, among others, (i) an increase in production cost of the Group due to rising price of raw materials, in particular iron ore; (ii) a decrease in production volume, sales volume and selling price of products of the Group due to the COVID-19 pandemic, the imposition of various production restriction policies by the government as well as the implementation of the equipment upsizing project of the Group; and (iii) non-recurring impact of write-off of non-current assets related to the equipment upsizing project of the Group during the Relevant Year. As a result, the Group expects to record a notable decrease in both the gross profit and net profit of the Group for the Relevant Year.