The board of directors of Greenheart Group Limited provided that the Group expects to record a significant increase in its net loss for the year ended 31 December 2019 as compared to the corresponding period last year. The Group considers the significant increase in its net loss attributable to the shareholders of the Company was due to the following: A not less than 25% year-on-year decrease in export revenue on free on board basis in New Zealand division of the Group, which was mainly due to the decelerated demand from China as previously disclosed in the Group's interim report 2019; A decrease in non-cash fair value gain on plantation forest assets located in New Zealand by approximately HKD 64 million for the Year. The gain was calculated based on the preliminary valuation as at the end of Year prepared by an independent valuer and such decrease in gain was primarily caused by unfavorable market conditions and higher forecasted cartage rates. The decrease was partially offset by the change of discount rate from 8.0% to 7.5% for certain plantation forest assets consistent with lower discount rates implicit in recent transactions and other available evidence in 2019; and A significant downward adjustment of the estimated recoverable value of certain assets within the west Suriname business unit, reflecting the effects of the sharp decline of the near to medium term forecasted selling prices, significant reduction of lumber output due to reduced production and the change of the operating strategy to stumpage sales of logs at fixed rate, instead of further processing to higher value products, in order to streamline the operations and reduce the uncertainties caused by the increases in the export costs of logs and the latest conditions of the relevant assets. Based on the preliminary valuation as at the end of Year prepared by an independent valuer and taking into account of the recoverable value of the relevant individual assets, the resultant non-cash impairment provision is approximately HKD 187 million.