Kwung's Holdings Limited provided earnings guidance of the Group for the six months ended 30 June 2020. For the period, the company expects to record a drop in revenue of approximately RMB57 million or 26%, and net profit of RMB5 million or 70% for the six months ended 30 June 2020 as compared to the six months ended 30 June 2019. The Directors consider that the expected drop in the Group's revenue and net profit for the six months ended 30 June 2020 was mainly due to the global outbreak of a novel coronavirus ("COVID-19"), which temporarily affected the demand for company's products from its customers located in different countries, including but not limited to, the PRC and European countries such as France, United Kingdom, Netherlands and Germany. The Group has been in close communication with its customers, especially the ones from European countries, from time and time, and some of them requested for a short postponement of the product shipment during the first quarter of 2020. The outbreak of COVID-19 remained severe in the second quarter of 2020, resulting in suspension of certain economic activities and further requests of postponement of product shipment and certain cancellation of purchase orders by the Group's customers.