The board of directors of the Perennial Energy Holdings Limited informed the shareholders of the company and potential investors that, based on the information currently available to the company and the preliminary review by the Board on the unaudited management accounts of the Group for the year ended 31 December 2020 (the "Year"), which have not been reviewed or audited by the independent auditors and/or the audit committee of the company, the consolidated profit attributable to the Shareholders for the Year is expected to increase by approximately 50% to 65% as compared to the consolidated profit attributable to the Shareholders of approximately RMB 218,021,000 for the year ended 31 December 2019. The Board believes that the expected growth in the profit attributable to the Shareholders for the Year is mainly due to the increased sales volume of clean coal produced from the Group's coal mines by more than 420,000 tonnes, representing an approximately 72% increase as compared to that of the Previous Year. The significant growth in sales volume is contributed by the full-year production of Baogushan Coal Mine and Hongguo Coal Mine under the expanded capacity quota of 600,000 tonnes per annum per mine during the Year; and the contribution from the newly acquired Xiejiahegou Coal Mine with a production capacity of 450,000 tonnes per annum. Despite a temporary disruption to the Group's mining operations and drop in the sales volume of the Group's coal products caused by COVID-19 in the first quarter of the Year, the Group's mining business and operations gradually recovered since then. The total sales volume of clean coal produced by the Group's coal mines for the six months ended 31 December 2020 increased by more than 16% as compared to that for the six months ended 30 June 2020. In addition to higher sales volume, the Group also recorded improved gross profit margin for the second half of the Year when compared to that for the first half of the Year due to more cost effective production in the second half of the Year as compared to the first half as a result of the continued recovery from COVID-19.