The board of directors of the Great Water Holdings Limited informed the shareholders of the company and potential investors that, based on the preliminary review of the interim unaudited consolidated management accounts of the company for the six months ended 30 June 2020 and the information currently available, the Group expects its interim net loss after tax to be not less than RMB 10 million, representing a significant increase from the net loss after tax of approximately RMB 4.8 million for the corresponding period last year. The Board considers that the net loss after tax is mainly attributable to a slump in new demands for domestic water supply and water treatment facilities due to the negative economic growth in the People's Republic of China for the first half of 2020 as a result of the outbreak of COVID-19; a delay in the commencement of projects since the end of the Spring Festival holidays in 2020 as a result of the COVID-19; additional costs for projects in progress, which was required to cope with the dual requirements of epidemic prevention and work schedules concurrently due to a shortage of manpower as a result of the COVID-19 policies; and the absence of the one-off revenue of approximately RMB 4,578,000 recorded from the disposal of a subsidiary during the corresponding period last year while no such revenue was recorded for this year.