Narnia (Hong Kong) Group Company Limited provided earnings guidance for the year ended 31 December 2020. For the year, the company is expected to record a net loss within the range of approximately RMB 9 million to RMB 11 million for the Year as compared to the net profit of approximately RMB 31.2 million recorded for the year ended 31 December 2019. The expected loss was mainly attributable to a significant drop in revenue of the Group in the first half of the Year as comparing with the same period in the Previous Year, which was caused by the outbreak of the novel coronavirus pandemic, which widely affected the textile industry in the People's Republic of China and globally significant decrease in gross profit margin recorded in the Year as a result of significant decrease in revenue while the cost of sales remained similar as comparing with the Previous Year; a reduction in government subsidies received by the Group in the Year; and net loss on sales of raw materials recorded for the Year as compared to net gain on sales of raw materials for the Previous Year.