The board of directors of Chuan Holdings Limited informed the shareholders of the company and potential investors that, based on the preliminary assessment of the unaudited consolidated management accounts of the Group for the year ended 31 December 2020 and the information currently available, the Group is expected to record consolidated loss attributable to owners of the company for 2020 of not less than approximately SGD 8.1 million, which represented a substantial decrease in the net profit attributable to owners of the Company as compared to a net profit attributable to owners of the Company for the year ended 31 December 2019 of approximately SGD 1.0 million. While a loss was expected for 2020, the liquidity of the Group remains strong with cash and cash equivalents of approximately SGS 46.2 million as at 31 December 2020. The Company is still in the process of finalizing the annual results of the Group for the FY2020. Based on the information currently available to the Board, such expected net loss was mainly attributable to the following key combining factors: the stoppage of non-essential construction activities during Circuit Breaker between 7 April and 1 June 2020 imposed by the Singapore Government to combat COVID-19 as well as the subsequent slow resumption of work had led to lower revenue recognition in 2020; the increase in operating costs of approximately SGD 4.7 million comprising an increase in subcontracting fees, overheads and dumping charges attributable to various projects while other fixed costs such as manpower costs and depreciation remained to be incurred despite the prolongation of projects. Such costs were partially offset by the decrease in diesel and leasing costs as a result of the suspension of construction activities; the increase in the expected impairment losses on deposits, receivables and contract assets totally of approximately S$5.8 million in view of the economic downturn as compared to approximately SGD 276,000 for 2019. Such impairment losses are non- cash items and therefore have no material impact on the Group's daily operations and cash flow; and the financial assistance received from the Singapore Government in the form of foreign worker levies rebates and waiver, wage support, rental waiver, as well as the Construction Restart Booster totally of approximately SGD 5.7 million has helped to defray part of the Group's manpower and rental costs during the COVID-19 pandemic.