The board of directors Coolpad Group Limited informed the shareholders of the Company and potential investors that, based on the preliminary assessment of the Group's unaudited consolidated management accounts for the year ended 31 December 2020 and the information currently available to the management, the Company is expected to record an unaudited loss attributable to the owners of the Company for the year ended 31 December 2020 of around HKD 400 million, as compared to a profit attributable to the owners of the Company of approximately HKD 112 million for the year ended 31 December 2019. Such expected turning of profit to loss for the 2020 is primarily attributable to: a decrease in revenue for 2020 by over 50% as compared with 2019, primarily attributable to the decrease in sales of mobile phones and related accessories to the United States market (the US Market), which is and has been the main source of the revenue of the Group. The US Market was severely affected by the novel coronavirus epidemic in 2020. As a result, the Group's gross profit margin was also declined due to rising prices in the procurement of raw materials and logistics and transportation as a result of insufficient operation of upstream suppliers' factories and delay in logistics for certain raw materials. While the Group continues to adjust and develop its business strategies through business restructuring and exploring channels in Mainland China, such measures will nonetheless take time to reflect in the Group's sales performance; and a loss of approximately HKD 56 million recorded from the disposal of the entire equity interest in Shenzhen Huiying Finance Co. Ltd.