The board of directors of NewOcean Energy Holdings Limited announced investors that, based on the preliminary assessment of the latest unaudited financial information, the Group is expected to record a consolidated net loss for the six months ended 30 June 2020 as compared to a consolidated net profit of approximately HKD 301 million for the six months ended 30 June 2019. Due to the global pandemic of COVID-19 and the slump in global oil prices during first half of 2020, the Group’s business operation has been seriously affected especially the oil bunkering business in Hong Kong and Singapore and the electronic business in the People’s Republic of China. As a consequence, the gross profit margin derived from oil bunkering business and electronic business has been substantially reduced or turned into gross loss margin as compared to first half of 2019. On top of the foregoing, the Group has also experienced undue delay in trade receivables collection and inventory being sold under purchase costs in recent months, therefore additional potential impairment losses on trade receivables and allowance for inventories are expected to be provided in first half of 2020.