Hilong Holding Limited provided consolidated earnings guidance for the year ended 31 December 2020. The group is expected to record a net loss ranging from approximately RMB 250 million to approximately RMB 330 million for the Financial Year. The anticipated net loss of the Group for the year ended 31 December 2020 was mainly attributable to (1) the extended duration and impact of COVID-19 on the oil and gas industry and the global economy as a whole, and in particular, the decrease in demand from oil and gas companies in connection with exploration, drilling and production activities and disruptions to businesses as a result of the prolonged COVID-19 pandemic in regions such as South America, East Europe and Africa, in which the Group has operations; (2) increase in provision for bad debts of accounts receivable for the Financial Year given the current market environment and management's expectation of receivables impacted by the current economic downturn; and (3) foreign exchange loss resulting from the fluctuations in the exchange rates of RMB against U.S. Dollar (USD).