The board of directors of the HongDa Financial Holding Limited announced that the shareholders of the Company and potential investors that, based on the preliminary assessment of the unaudited management accounts of the Group to the Board, the Group is expected to record an increase in loss for the year ended 31 December 2019 as compared to a loss for the year ended 31 December 2018. The increase in loss for full year 2019 is mainly attributable to (i) decrease in revenue in relation to the materials trading business during full year 2019 as a result of the negative sentiment of the PRC-US trade war, which affects global economy and reduces the demand for commodities; (ii) increase in finance costs (including interest on bank and other borrowings and interest on convertible bonds) compared with last year; (iii) increase in fair value loss on financial assets at fair value through profit or loss as a result of the challenging marcoeconomy and current outbreak of COVID-19 epidemic; and (iv) increase in impairment loss on the receivables after adoption of expected credit loss model under Hong Kong Financial Reporting Standard 9. As the Company is still in the process of finalising the final results of the Group for FY2019, the information contained in this announcement is based only a preliminary assessment by the management according to the information currently available to it and is not based on any figures or information that has been audited or reviewed by the auditors or the audit committee of the Board and may be subject to change. Shareholders and potential investors of the Company are advised to refer to the details of the announcement of unaudited annual results for the FY2019, which is expected to be published on 30 March 2020.