Furniweb Holdings Limited provided earnings guidance for the year ended December 31, 2019. Based on the preliminary review of the unaudited consolidated management accounts of the Group for the financial year ended 31 December 2019, the Group expects to record a substantial decline in its financial performance and anticipates to report a net loss for the Year of approximately MYR 43 million as compared to the net profit of approximately MYR 0.9 million for the corresponding year in 2018. The Group's profitability for the Year was mainly affected by the following factors: recognition of impairment loss on goodwill arising from Meinaide Holdings Group Limited ("Meinaide"), a subsidiary of the Company acquired in the Year whose principal business operations are carried out in China, mainly due to the challenging operating environment, in particular, the outbreak of COVID-19 which has materially and adversely impacted general business activities nationwide in China since January this year; recognition of impairment loss on assets held for the disposal (the "Disposal") of Premier Elastic Webbing & Accessories (Vietnam) Co. Ltd. ("PEWA") as the consideration of the Disposal is lower than the carrying amount of PEWA; recognition of impairment loss on goodwill arising from Furnitech Components (Vietnam) Co. Ltd., an associate of the Company due to weaker sales performance; increase in administrative expenses due to the one-off professional fees incurred mainly for the acquisition of Meinaide, which was completed on 28 June 2019; and loss from the retail division of the Group mainly due to weaker sales performance, higher fixed overheads, and increased marketing expenses.