China Risun Group Limited provided earnings guidance for the six months ended June 30, 2020. For the six months, the company expected that there will be a decrease of up to 60% in the net profit for the Period as compared with that for the same period in 2019. The Group's decrease in net profit for the Period was due to multiple impacts, mostly attributable to the decline in price of coke products from February to April in 2020, leading to narrowing of the price spread. As of the date of the announcement, coke price of the Group has rebounded to approximately RMB 1,800 per tone (exclusive of tax), and believe that the coke price will continue to maintain in the second half of 2020. Furthermore, the prices of refined chemical products (mainly benzene and caprolactam) were affected by the decline in international crude oil prices, and the COVID-19 epidemic had hit different industries to a certain extent, affecting the demand for refined chemical products of the Group. Finally, the Group recorded an impairment provision of approximately RMB 50 million in its fixed assets (mainly the dimethyl ether production facilities) during the Period. Despite the expected decrease in net profit during the Period, the Board believes that the overall operation and financial position of the Group for 2020 remain healthy and stable. The Company will commit itself to creating values for Shareholders in a long-term and sustainable manner. During the Period and as of the date of the announcement, the Group has entered into an operation and management agreement (approximately 130 tons per year in total) with a third-party coking production company which enables the Group to continuously seize the opportunities in industry integration and expand its business scope by various ways, including but not limited to expanding operation management services.