Grace Wine Holdings Limited provided earnings guidance for the year ended December 31, 2020. The board of directors of the company announced that based on the preliminary review of the unaudited consolidated management accounts of the group for the year ended 31 December 2020, the group is expected to record a profit before tax of not more than RMB 2 million in financial year 2020, representing a decrease of not less than 54% from a profit before tax of approximately RMB 4.4 million for the year ended 31 December 2019, mainly attributable to (i) a decrease in revenue due to the overall drop in sales volume of the Group's wine products as a result of the outbreak of the Coronavirus Disease 2019 in the People's Republic of China during financial year 2020 and a significant increase in selling and distribution expenses, which were mostly incurred during the last quarter of financial year 2020 as part of the group's overall strategy to increase sales effort and improve market presence following the COVID-19 pandemic.