Miji International Holdings Limited provided consolidated earnings guidance for the year ended 31 December 2020. The Group expects to record a net loss after tax of approximately RMB 19.4 million for the year ended 31 December 2020, as opposed to a net profit after tax of approximately RMB 19.9 million for the corresponding period in 2019. The expected net loss is primarily attributed to: 1) an expected decline in the Group's revenue by approximately 20% to 25% resulting from the disruption of the Group's business operations caused by the novel coronavirus; 2) an expected decline in the Group's gross profit margin from 54.3% for the year ended 31 December 2019 to approximately 50% for the year ended 31 December 2020 resulting from the increase in marketing incentives offered to customers to stimulate sale performance; 3) an expected increase in the Group's selling and distribution expenses by 7% to 10% resulting from the increased consignment fees in relation to sales through television platform and increased marketing and advertising expenses in relation to product exhibitions and other marketing events; and 4) the recognition of exchange losses of approximately RMB 3 million. The expected net loss is reduced by a gain of approximately RMB 5 million on a partial disposal of equity interest in an associate. Throughout the year, the Group consistently implemented appropriate measures to improve its financial performance and its effort was gradually reflected in the second half of 2020, which was expected to record a smaller net loss as compared with the first half of 2020.