Dragon King Group Holdings Limited provided earnings guidance for the year ended 31 December 2020. For the period, the Group expected to record a net loss of approximately HKD 74.0 million for the year ended 31 December 2020 as compared to a net loss of approximately HKD 35.5 million recorded for the year ended 31 December 2019. The Board considered that the expected loss was mainly attributable to the combined effects of the significant decrease in the revenue received of approximately HKD 206.3 million during the year as compared to 2019; the impairment losses on property, plant and equipment and right- of-use assets of restaurants of approximately HKD 22.4 million primarily as the result of the continuous outbreak of the novel coronavirus throughout the year and series of anti-epidemic measures implemented causing adverse impacts on the number of customers and their frequency of visit, which further influencing the impairment assessments for some of restaurants and the impairment loss under the expected credit loss model of approximately HKD 8.9 million. The abovementioned effects have been partially offset by the government subsidies in the amount of approximately HKD 17.6 million received by the Group during the year.