Hengxing Gold Holding Company Limited board of directors announced that, based on the preliminary assessment of the unaudited consolidated management accounts of the Group and the information currently available, the Group is expected to record a decrease in consolidated net profit after tax by approximately 30% for the six months ended 30 June 2020 (the "Interim Period") as compared to the corresponding period in 2019. The lower net profit for the Interim Period as compared to the same period in 2019 was mainly attributed to lower gold production level. With the outbreak of the novel coronavirus ("COVID-19") in Mainland China at the beginning of 2020, the strict travel restrictions and quarantine measures imposed by the government had led to a major delay in work force returning and the delivery of necessary production materials. Gold Mountain Mine only gradually started to return to normal operation from the end of March 2020. In addition, maintenance work for the roads connecting to Gold Mountain Mine was carried out which had further disrupted the mining and production for about 10 days. For these reasons, the full operational days were significantly reduced resulting in gold production of approximately 20,544 ounces (equivalent to approximately 661kg) in the Interim Period, which represented 40% decrease compared to that of the same period last year.