China Shenghai Group Limited provided earnings guidance for the year ended December 31, 2020. For the year, the company expects to record a loss of not less than RMB 20 million for the year ended 31 December 2020 as compared to the profit of approximately RMB 31 million recorded for the year ended 31 December 2019. The Board considers that such loss was mainly attributable to the decrease in demand from the customers of the Group for its products as a result of the outbreak of the 2019 coronavirus disease, which resulted in the decrease in sales volume and profit margin of the products of the Group.