Narnia (Hong Kong) Group Company Limited provided financial guidance for the six months ended June 30, 2020. Company informed the shareholders and potential investors that the Group is expected to record a net loss of approximately RMB 16.5 million for the Interim Period as compared to the net profit of approximately RMB 18.4 million recorded for the six months ended 30 June 2019. Based on the information currently available, the expected loss was mainly attributable to (i) a significant drop in revenue of the Group in the Interim Period as comparing with the same period in 2019, which was caused by the outbreak of the novel coronavirus (COVID-19) pandemic (the "Pandemic") widely affected different industries including the textile industry in the People's Republic of China (the "PRC") and globally; (ii) significant decrease in gross profit margin as a result of significant decrease in revenue while cost of sales remained similar as comparing with the same period in 2019; and (iii) a reduction in government subsidies and sales of raw materials.