The board of directors of Paliburg Holdings Limited announced that, based on the preliminary review by management of the Company on the unaudited consolidated management accounts of the Group for the six months ended 30th June, 2020 (the "2020 Interim Period"), the Group expects that it will incur a net loss in excess of HKD 500 million for the 2020 Interim Period, while a profit of HKD 106.3 million was recorded for the comparative six months in 2019. The loss expected to be incurred by the Group for the 2020 Interim Period is primarily attributable to the fair value losses on investment properties and financial assets at fair value through profit or loss and depreciation charges on hotel properties, all of which are non-cash items, and finance costs. As indicated in the annual results of the Group for 2019 released on 26th March, 2020, the outbreak of the novel coronavirus is causing severe disruption to overall business activities. During the 2020 Interim Period, the revenue from the Group's core hotel businesses, which are undertaken through Regal Hotels International Holdings Limited ("Regal"), the major listed subsidiary of the Company, has dropped drastically as compared to that in the first six months of 2019. Nevertheless, through the implementation of prompt measures to streamline operating structure and to contain operating costs, Regal has been able to achieve a modest gross operating profit in the overall business operations of all the hotels operated by it in Hong Kong during the 2020 Interim Period. Moreover, despite the substantial contracted sales secured at Mount Regalia in Kau To, Sha Tin developed by P&R Holdings Limited, a 50-50% held joint venture with Regal and effectively a subsidiary of the Company, as well as the substantial contracted presales of the residential units in the third stage of the development undertaken by Cosmopolitan International Holdings Limited, also a listed subsidiary of the Company, in Chengdu, China, the profits from these contracted sales and/or presales will only be recognised when the properties sold are handed over to the respective purchasers after completion of the relevant sales.