China Dynamics (Holdings) Limited provided earnings guidance for the year ended March 31, 2021. For the period, the Group expects the loss for the year ended 31 March 2021 will be enlarged as compared with the year ended 31 March 2020. Such loss is mainly attributable to an impairment loss on the mining assets in Guangxi, the PRC, of approximately HKD 700 million. The mining assets were stated at fair value calculated by a qualified independent valuer engaged by the Company. The decrease in fair value of the mining assets was due to the multiple effects on the assumptions made by the Company and the Valuer, including the increase in discount rate and costs growth rate and the decrease in income growth rate, after taking into account the uncertainty and fluctuation of global demand during the outbreak of COVID-19 pandemic. Such impairment loss are non-cash items and will not affect the cash flow of the Group.