The Board of Walcom Group Limited provided an update on the Company’s current working capital position. Mr. Francis Chi, Chief Executive of the Company, has still been unable to provide the proposed loan of HKD 1,230,000 (the “Director Loan”) to the Company as intended. Mr. Chi has, again, reiterated his intention to provide the Director Loan but there can be no certainty as to the provision or the timing of the Director Loan. As previously announced, the Company has been taking steps to conserve its cash resources, including the deferral of certain expenses. To this end, the Company has been able to defer a loan repayment of RMB 200,000, previously due to be paid at the end of May 2020, to 3 June 2020. The Company will require additional funding to repay this bank loan. Therefore, based on Walcom’s current cash flow projections, the Company will be able to continue operations until 3 June 2020. In the absence of the Director Loan now being received in part or in full by 3 June 2020, the Company would be unable to continue its operations and would be forced into liquidation with a consequential diminution in value to shareholders.