The board of directors of Hong Wei (Asia) Holdings Company Limited provided that, the Company expects to report a loss after tax of not less than HK$65 million for the financial year ended 31 December 2020 ("fiscal year 2020") as compared to a net profit after tax of approximately HKD 25.3 million for the last year ("fiscal year 2019"), mainly attributable to the following: the Group has seen a decline in revenue due to the impact of COVID-19 which affected the industry and increase in cost of sales in second half of the year, as a result of which the gross profit for fiscal year 2020 is estimated to be approximately 34% less than that for fiscal year 2019; and the valuation of market comparables decreases which results in a substantial loss arising from changes in the fair value less costs to sell of the Group's biological assets (being the timber trees in its forests) and an impairment of the forestry land.