Huakang Biomedical Holdings Company Limited provided earnings guidance for the year ended December 31, 2020. For the period, the company expects to record a loss attributable to owners of the Company of approximately RMB 11.6 million for the year ended 31 December 2020 as compared with approximately RMB 284,000 for the year ended 31 December 2019. The Board believes that the increase in loss in the Current Year was mainly attributable to: the decline in sales revenue in the markets within the People's Republic of China of approximately RMB 4.3 million as since the outbreak of the novel coronavirus (COVID-19) epidemic, a number of provinces and municipalities in the PRC have taken emergency public health measures and various actions to prevent the spread of the Epidemic, including crowd-control and/or stay-home policies or orders and in addition, the Epidemic also led the Group to halt productions and sales for around five weeks; recognition of equity-settled share option expenses for the share options granted on 9 April 2020 of approximately RMB 2.7 million; recognition of one-off non-cash provision for impairment loss of approximately RMB 2.6 million which was recorded by the Group after it has performed an evaluation and assessment on the Group's fixed assets and adopted the prudent principles in view of the adverse effect of the Epidemic on the business and operation environment; the net foreign exchange loss of approximately RMB 1.1 million, the majority of which was unrealized foreign exchange loss, due to fluctuations in the foreign exchange rate between foreign currency and RMB, compared to the net foreign exchange gain of approximately RMB 498,000 in the Corresponding Year; and the amount of impairment losses recognised on the Group's trade receivables of approximately RMB 779,000 in the Current Year, compared to the reversal of impairment loss of approximately RMB 250,000 in the Corresponding Year, which was mainly attributable to the Epidemic that affected the repayment abilities of the Group's debtors.