Huazhang Technology Holding Limited is expected to record a net profit of approximately RMB 15.0 million to RMB 20.0 million for the six months ended 31 December 2020, as compared to the net loss of RMB 35.9 million for the six months ended 31 December 2019. Such change was mainly attributable to: i) the Group is expected that significant decrease in impairment loss on financial assets for the six months ended 31 December 2020, as compared to the impairment loss on financial assets of approximately RMB 48.7 million for the six months ended 31 December 2019; and ii) a decrease in expenditures of approximately RMB 6.5 million in relation to the preparation work of the waste recycling and treatment projects for the six months ended 31 December 2020 as compared with the respective period in 2019.