IPE Group Limited board of directors announced that according to the preliminary review over the drafted financial information of the Group for the six months ended 30 June 2020 prepared by the Company's management and the information currently available to the Board, the net profit of the Group for the six months ended 30 June 2020 of the Company recorded a substantial decrease around 75% and 85% in profit as compared with the same period in 2019. The Board believes that decrease in the net profit of the Group for the six months ended 30 June 2020 is mainly attributable to the outbreak of novel coronavirus (COVID-19) over global. The portion of exports sales of the Group is relatively large. As major customers in Europe and the United States have ceased production or reduced orders substantially, resulting in reduced revenue. In addition, PRC authorities have taken a series of prevention and control measures of COVID-19.