Honghua Group Limited provided earnings guidance for the six months ended 30 June 2020. For the period, the company expects that the profit attributable to the shareholders of the Company to decrease by approximately 40%-60% as compared to that for the six months ended 30 June 2019. The expected decrease in profit for the six months ended 30 June 2020 is primarily attributable to a decline in the market demand of the global oil and gas services due to the COVID-19 and the significant fluctuation in the international oil price, a year-on-year decrease in the sales revenue of the Group resulting from the reduced overseas orders for rigs and the delay in some projects in terms of the international market, a year-on-year increase in the finance costs resulting from the proper increase of the Company's borrowings to strengthen the capital reserves for the special period, and the impact of non-recurring gains and losses such as asset impairment provision and non-operating expenses which are considered out of prudence.