China Rundong Auto Group Limited provided preliminary group earnings guidance for the year ending 31 December 2019. The board of directors announced that the shareholders of the Company and potential investors that the Board is of the view that, based on the preliminary assessment of the Group's latest unaudited management accounts of the Group for the 11 months ended 30 November 2019 and other information currently available to the Board, the Group is expected to record a significant increase in net loss for the year ended 31 December 2019 as compared to the year ended 31 December 2018. The Board considers that, the expected increase in net loss for the Year was primarily due to the following factors: 1. In the second half of 2019, passenger vehicle market in China continued to show negative growth, particularly during the volatility period when the overall global economy has slowed down, Sino-US trade frictions has intensified, and drivers of growth in domestic economy is undergoing a transformation, consumer income expectations and automobile consumption confidence have declined to certain extent. For the first 11 months of 2019, passenger vehicle sales in China were bleak, overall down by approximately 10.5% on year-on-year basis, according to the report of China Association of Automotive Manufacturers. The Group's overall new car sales volume decreased during the Year, leading to lower aftersales volume and overall revenue; In 2019, the applicable national five emission standards of the automotive industry have been upgraded and converted into a new national six emission standards, which indirectly led to an increase in the inventory pressure of major automobile dealer groups. The Group continued to undergo the process of transition, and in particular, the destocking of major automobile dealer groups meant that terminal discounts increased, and the decrease in retail price cuts far exceeded management expectations, resulting in the overall revenue and result performance of the Group for the Year being affected; In view of the overall declining growth in the automobile industry as described in the preceding paragraphs, and post-acquisition integration over acquired stores that are yet to be crystalised as per the Group's expectation, the Group continuously realigns its business strategy and restructures the business operation. The Group's management is closely monitoring the working capital and overall liquidity of the Company, and actively communicating with auto manufacturers, business partners and creditors.