New Ray Medicine International Holding Limited provided group earnings guidance for the year ended December 31, 2020. For the year, it is expected that the Group will record a significant increase in net loss for the year ended 31 December 2020 as compared to a net loss of approximately HKD 44.1 million for the year ended 31 December 2019. The loss of the Group for fiscal year 2020 was mainly attributable to (i) the decrease in gross profit mainly due to the decrease in the average selling price of the Group's major product under the second generation of Cephalosporins ("Product") (1.0g) under the newly implemented centralised drug procurement policy in some regions in the People's Republic of China in 2020; (ii) the decrease in share of profit of Saike International Medical Group Limited ("Saike International"), an associate of the Group, as a result of the slowdown in trading activities due to the outbreak of the Covid-19 pandemic in 2020; (iii) the recognition of impairment losses in respect of the Group's interest in Saike International of approximately HKD 29.9 million for fiscal year 2020 (fiscal year 2019: approximately HKD 20.9 million); (iv) the recognition of an expected credit loss allowance of approximately HKD 32.7 million on the Group's trade and other receivables for fiscal year 2020 (fiscal year 2019: approximately HKD 9.0 million) due to an expected increase in uncertainty over the repayment of long outstanding trade and other receivables of the Group; and (v) the recognition of impairment losses on asset held for sale of approximately HKD 7.6 million for fiscal year 2020 (fiscal year 2019: nil).