China Environmental Resources Group Limited provided earnings guidance for the year ended 30 June 2020. The Company expected to record decrease in loss for the year ended 30 June 2020 by not less than 50% as compared to the loss for the corresponding period in 2019 of approximately HKD 121.1 million. The Board considers that such decrease was attributable to the combined effects of the (i) increase in gross profit to approximately HKD 18.8 million due to change in product mix; (ii) decrease in loss from changes in fair value less costs to sell of biological assets to approximately HKD 4.8 million; (iii) decrease in general and administrative and operating expenses to approximately HKD 45.4 million mainly due to decrease in salaries, advertising and promotion expenses and legal and professional fee; (iv) decrease in loss on fair value changes on investments at fair value through profit or loss to approximately HKD 2.9 million; and (v) absence of the provision for impairment loss of intangible assets during the year ended 30 June 2020.