The board of directors of Wah Sun Handbags International Holdings Limited announced earning guidance for the year ended 31 March 2021. For the year, the company expects that the Group will record the net profit attributable to the owners of the Company of not more than approximately HKD 6 million for the Reporting Year as compared to the net profit attributable to owners of the Company of approximately HKD 11 million recorded for the year ended 31 March 2020. The decrease in the net profit attributable to the owners of the Company was mainly attributable to the net effect of the following factors: the significant decrease in revenue by approximately HK$352 million to approximately HKD 404 million for the Reporting Year from approximately HK$756 million for the year ended 31 March 2020, representing a decrease of approximately 47%. The decrease was mainly attributable to the adverse impact from the outbreak of the novel coronavirus disease 2019 (the "COVID-19"), which resulted in the overall sluggish atmosphere in the consumer markets of North America and the European Union, the markets for our products; the corresponding decrease in gross profit and gross profit margin led by the drop in revenue as a result of the drop in the quantity of goods sold by the Group and included in cost of sales, being the fixed costs such as most of the direct labour cost in production facilities and the depreciation of property, plant and equipment; the temporary suspension for most of the production facilities of the Group in Cambodia during the period from end of March 2020 to early May 2020 due to the outbreak of the COVID-19; the reversal of provision for impairment of trade receivables of approximately HKD 4.5 million has been made for the Reporting Year while provision for impairment of trade receivables of approximately HKD 34.4 million was made in last year; and the reduction in selling and distribution expenses and administrative expenses when compared with the corresponding period of last year as this was mainly attributable to the drop in the level of sales activity and various cost control measures undertaken by the Group during the Reporting Year.