The board of directors of China Futex Holdings Limited informed the shareholders of the Company (the "Shareholders") and potential investors that, based on the information currently available to the Board, the Group is expected to record a decline in unaudited net profit for the six months ended 30 June 2020, from approximately RMB 9.1 million to approximately RMB 1.4 million, representing a decrease of approximately 84% as compared to the unaudited net profit for the six months ended 30 June 2019. The expected decline in net profit is primarily attributable to a considerable drop in revenue of approximately 59% as compared with the corresponding period in 2019. The outbreak of the novel coronavirus (COVID-19) pandemic developed rapidly and had adverse impact to the global economic conditions during the Period, and demands from its overseas and domestic customers were both generally low as compared to the corresponding period in 2019.