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, the Group is expected to record a net loss for the six months ended 30 June 2020 of approximately SGD 7.2 million as compared to a net profit of approximately SGD 1.2 million for the six months ended 30 June 2019. Based on the information currently available to the Board, such expected net loss was mainly attributable to: the delays in project schedules and lower revenue recognition as a result of the suspension of most construction activities of the Group amidst the circuit breaker measures imposed by the Singapore Government during the period between 7 April 2020 and 1 June 2020 to combat COVID-19 and the movement restrictions on foreign worker dormitories such that the construction sector was unable to resume operations immediately to its normal level even after the circuit breaker period ended on 1 June 2020; the increase in operating costs of approximately SGD 7.3 million comprising an increase in the subcontracting fees, overheads and dumping charges attributable to various projects while the fixed costs such as manpower costs and depreciation incurred despite the suspension of construction activities remained relatively stable. Such costs were partially offset by the decrease in cost for diesel and leasing costs as a result of the suspension of construction activities; the additional relieves provided by the Singapore Government in the form of rebates, waiver of foreign worker levies and wage support of a total of approximately SGD 2.2 million which helped to defray part of the Group's manpower costs during the circuit breaker period; and the increase in the expected impairment losses on deposits, receivables and contract assets totally of approximately SGD 2.5 million for the Interim Period in view of the current economic slowdown in Singapore as compared to approximately SGD 167,000 for the same period last year.