Item 8.01. Other Events.
China Carbon Graphite Group, Inc. (the "Company") is providing the following
update on the filing of its quarterly report on Form 10-Q for the three months
ended March 31, 2020 (the "Quarterly Report"). As a result of the global
outbreak of the COVID-19, first reported in mainland China in December 2019,
then in Asia and eventually throughout the world, the Company is unable to meet
the filing deadline of the Quarterly Report. The Company's business is located
in China. In order to avoid the risk of the virus spreading, the Chinese
government required enterprises to temporarily close offices and cease
production. The Company has been following the recommendations of local health
authorities to minimize exposure risk for its team members in February and
March, including the temporary closures of its offices and having team members
work remotely. The Company started resuming its operations in April 2020, and,
as a result, the Quarterly Report will not be completed by the filing deadline,
due to insufficient time to facilitate the internal and external review process.
In accordance with the order (the "Order") promulgated by the Securities and
Exchange Commission on March 4, 2020 in Release No. 34-88318 relating to
the Securities Exchange Act of 1934, as amended as modified on March 25, 2020 in
Release No. 34-88465, the Company will file the Quarterly Report within 45
calendar days of the required date, which shall be no later than June 29, 2020.
The Company will evaluate its need for an additional extension under
Rule 12b-25 at that time, as contemplated by the Order.
The Company is supplementing the risk factors explaining the impact of COVID-19
on its business:
We are susceptible to general economic conditions, natural catastrophic events
and public health crises, market downturns and changes in supply chains and
sales demand could adversely affect our operating results.
Our operating results will be subject to fluctuations based on general economic
conditions, in particular those conditions that impact graphite products
industry. Deterioration in economic conditions could cause decreases in both
retail and wholesale trade volume and reduce and/or negatively impact our
short-term ability to grow our revenues. Further, any decreased collectability
of accounts receivable or early termination of agreements due to deterioration
in economic conditions could negatively impact our results of operations.
Furthermore, our business is subject to the impact of natural catastrophic
events such as earthquakes, floods or power outages, political crises such as
terrorism or war, and public health crises, such as disease outbreaks,
epidemics, or pandemics in the U.S. and global economies, our markets and
business locations. Currently, the rapid spread of
coronavirus (COVID-19) globally has resulted in increased travel restrictions
and disruption and shutdown of businesses. We may experience impacts from
quarantines, market downturns and changes in customer behavior related to
pandemic fears and impacts on our workforce if the virus becomes widespread in
any of our markets. If the virus were to affect a significant number of our
workforce employed in our business-to-business and business-to-customer sales
operation, we may experience delays or the inability to deliver our products to
customers on a timely basis. In addition, our manufacture process relies on raw
materials and components provided by our suppliers. If the ongoing quarantining
measures cause delays along our supply chain, we will likely experience
manufacture slow-down for the indefinite future. Our customers include mainly
domestic customers and we generally do not enter into long-term contracts with
our customers; one or more of our customers, distribution partners, service
providers or suppliers may experience financial distress, file for bankruptcy
protection, go out of business, or suffer disruptions in their business due to
the coronavirus outbreak; as a result, our operation revenues may be impacted.
The extent to which the coronavirus impacts our results will depend on future
developments, which are highly uncertain and will include emerging information
concerning the severity of the coronavirus and the actions taken by governments
and private businesses to attempt to contain the coronavirus, but is likely to
result in a material adverse impact on our business, results of operations and
financial condition at least for the near term.
Forward-Looking Statements
Statements in this Current Report on Form 8-K are "forward-looking statements"
as the term is defined under applicable securities laws. These statements
include the anticipated timing of the filing of Company's quarterly and annual
statements under the Exchange Act; the expected impact of the COVID-19 virus
outbreak on the Company's financial reporting capabilities and its operations
generally and the potential impact of such virus on the Company's customers,
distribution partners, advertisers and production facilities and other third
parties. These and other forward-looking statements are subject to risks,
uncertainties and other factors that could cause actual results to differ
materially from those statements. Such risks and uncertainties are, in many
instances, beyond the Company's control. Forward-looking statements, which are
presented as of the date of this filing, will not be updated to reflect events
or circumstances after the date of this statement except as required by law.
1
© Edgar Online, source Glimpses