Zhejiang Chang'an Renheng Technology Co., Ltd. provided earnings guidance for the three months ended 31 March 2020. The Group is expected to record a loss of approximately RMB 1.0 million for three months of 2020 as compared to the net profit of approximately RMB 0.1 million recorded for the three months ended 31 March 2019. Based on the information currently available, the expected loss was mainly attributable to a drop in revenue of the Group in 3M2020 as comparing with the same period in 2019, which was caused by the outbreak of the novel coronavirus (COVID-19) pandemic (the "Pandemic"), which widely affected different industries including the bentonite industry in the People's Republic of China (the "PRC") and globally. During three months of 2020, to prevent the spread of the Pandemic, the Group's factories in the PRC halted its production for nearly one month, and gradually restored its production in March 2020.