Zhejiang Yongan Rongtong Holdings Co., Ltd. provided consolidated earnings guidance for the full year ended December 31, 2019. The board of directors of the company inform the shareholders of the company and the potential investors that, based on preliminary review of the unaudited consolidated management accounts of the Group for the year ended 31 December 2019 and assessment of the information currently available, the Group is expected to record a net loss attributable to the Shareholders of not less than approximately RMB 16.18 million as compared to the net loss attributable to the Shareholders of approximately RMB 3.57 million for the year ended 31 December 2018 mainly due to the following factors: Turnover of the Group for the year ended 31 December 2019 declined by approximately 11.07% mainly due to decrease of revenue from manufacturing and sales of woven fabrics and provision of subcontracting services as a result of the deterioration in macroeconomic environment and business uncertainty as caused by the trade dispute between the United States and China. The gross profit for the year ended 31 December 2019 declined by approximately 19.68% mainly due to increase of cost of sales such as wages, depreciation, utility cost and spare parts etc., during the year ended 31 December 2019; Administrative expenses significantly increased by approximately 42.51% mainly due to (a) rising of research and development expense for further enhancement of new product development; (b) impairment loss on accounts receivables; (c) professional fees paid for preparing the connected and major transactions, details of which were disclosed in the circular of the Company dated 24 April 2019 and the announcement dated 21 August 2019, and (d) increase of salary and benefits; Share of losses of associates for the year ended 31 December 2019 represents share of losses from Beijing Tepia Technology Co., Ltd., a company incorporated in the PRC and is listed on the NEEQ. The acquisition of the 41.67% of interest in the Target Company was completed on 20 August 2019, details of which were disclosed in the respective circular dated 24 April 2019 and the announcement dated 21 August 2019. The Target company incurred losses during the year ended 31 December 2019 mainly due to (a) the Target Company was undergoing strategic business shift to new water management related business which at the starting point required effort in promotion and research and development, as such promotion expenses and staff salaries for engagement in promotion and research and development increased significantly and revenue of traditional business decreased significantly; (b) revenue decreased also due to the fact that some of the relevant local government authorities either deferred or cancelled tendering of certain projects due to the poor local economic sentiment and financing difficulties encountered by local municipal governmental platforms.