Zhejiang Cangnan Instrument Group Company Limited board of directors announced that based on the information currently available, the Group expects to record a decrease in the net profit for the financial year ended 31 December 2020 (the "Reporting Period") by approximately 34% to 49%, as compared to the financial year of 2019, which was primarily due to the following reasons: (1) the consumption demand of the natural gas industry was significantly affected by the COVID-19 outbreak and macro-economy in 2020: the gas consumption for industry and commerce and power generation was suppressed, the oversupply increased, the gas price of main market fell, the industrial and commercial new installation and renovation budgets for gas companies was greatly reduced, which decreased the revenue of the Company; (2) government grants awarded to the Company during the Reporting Period decreased significantly as compared to the corresponding period of 2019; and (3) the costs increased due to (a) the upgrade and replacement of the product structure and the upgrade of EVC parts; and (b) the increased purchase prices of imported materials (such as integrated circuits) and aluminium ingots due to the impacts of COVID-19 outbreak during the Reporting Period, thus bringing about an impact on the net profit.