The board of directors of the Bauhaus International (Holdings) Limited announced that it has decided to close all retail stores in Mainland China as soon as possible and reduce more than half of the retail stores in Taiwan by the year ending 31 March 2021. The management teams in the respective regions will commence negotiations with the respective landlords of the stores promptly with a view to closing the stores in an orderly and timely manner but the exact timing for the closing of each individual store is subject to negotiations with individual landlords. The Group's performance in Mainland China and Taiwan has been far from satisfactory in recent years, and has recorded losses for two consecutive financial years ended 31 March 2018 and 2019 and also for the six months ended 30 September 2019. For the six months ended 30 September 2019, the Group's turnover from the Mainland China and Taiwan segments accounted for about 14.4% and 13.9% respectively of the Group's consolidated turnover. As at 31 December 2019, the Group operated 21 stores in Mainland China and 65 stores/counters in Taiwan. In order to improve the performance in Mainland China and Taiwan, the Group had taken measures in recent years to enhance retail management controls, to restructure product mix as well as to implement various marketing tactics with a view to driving sales. Unfortunately, the results were still far from satisfactory. After careful consideration, the Group believes that the closure of its loss-making business in Mainland China and the elimination of under-performing stores in Taiwan will help improve the performance and profitability of its remaining core businesses, and is in the best interests of the Group and its shareholders as a whole. A total of approximately 400 employees will be made redundant as a result of the store closings. They will be fully compensated in accordance with local employment laws and regulations. In addition, subject to negotiations with the respective landlords of the stores, the closure and downsizing will result in a loss while it is not expected to have a significant adverse impact on the operations of the Group and its cash flows. As at the date of this announcement, the Group has sufficient cash on hand to meet current business needs.