China Wood Optimization (Holding) Limited provided preliminary unaudited consolidated earnings guidance for the year ended 31 December 2020. The company Group is expected to record a net loss after tax of not less than RMB 380 million for the year ended 31 December 2020 as compared to a net profit after tax for the corresponding period in 2019. The net loss after tax is mainly due to the substantial decrease in revenue of the Group by about 80% as compared with the corresponding period in 2019. Such decrease was mainly attributable to the weak sales performance brought about by the outbreak of the COVID-19 pandemic in 2020. The recovery of solid wood industry in both China and overseas in the second half of 2020 was slower than the company's expectation. The COVID-19 pandemic not only caused severe impact to the Group but also to the upstream suppliers and downstream customers of the Group. As a result, provisions for doubtful debts, other receivables, prepayments to suppliers, obsolete stocks and impairment losses of equipment have increased substantially for the second half of 2020.