Hengxin Technology Ltd. provided consolidated earnings guidance for the six months ended June 30, 2020. For the period, the company expected unaudited net profit to decline by around 60% to 70% as compared with unaudited consolidated net profit of approximately RMB 73.4 million for the six months ended 30 June 2019. The decrease in net profit was mainly attributable to the negative impact caused by the outbreak of COVID-19 in mainland China during the first quarter of 2020. Further, restrictive measures such as the lockdowns were adopted by various countries had affected the sentiment on the demand, and the reduced number of purchase orders had also brought downward pressures on the demand for the Group's products. Nonetheless, with the gradual resumption of business and economic activities in mainland China during the second quarter of 2020, the Group has been able to generate positive contribution from its production activities and business, recovering the loss incurred during the first quarter of 2020. In view of the continuing strong demand for telecommunication products in mainland China, especially the 5G-related equipment, the Group is confident that market demand for the Group's products remains strong.