The board of directors of Shanghai Qingpu Fire-Fighting Equipment Co., Ltd. provided on 4 February 2020 that the annual results of the Group for the year ended 31 December 2019 are expected to worsen from the loss attributable to owners of the Group of approximately RMB 3,394,000 for the year ended 31 December 2018 to a loss attributable to owners of the Group of approximately RMB 8,000,000. The Board wishes to further inform the shareholders of the Company and potential investors that, based on the information currently available, the Group is expected to record a loss attributable to owners of the company for the Year 2019 of approximately RMB 10,500,000 compare to approximately RMB 3,394,000 in the Year 2018. This is primarily due to (a) the decrease in the gross margin of the Group by approximately 5% points from 24% for the Year 2018 to 20% for the Year 2019; and (b) write-off of assets and labour redundancy costs resulting from the Group's strategic decision to vacate a factory for converting its use from own production to lease out for rental; and (c) impairment of trade and bills receivables.