Kong Sun Holdings Limited informed that based on the preliminary review of the Group's unaudited consolidated management accounts for the six months ended 30 June 2020, the Group is expected to record a net loss of approximately RMB 40,000,000 for the six months ended 30 June 2020 as compared to a net loss of approximately RMB 40,909,000 for the six months ended 30 June 2019. The expected net loss of the Group was primarily attributable to a combination of the following factors: a decrease in the gross profit of approximately RMB 130,000,000 due to a decrease in the sales of electricity; a decrease in the impairment loss on a disposal group classified as held for sale related to the very substantial disposal of (Huzhou Xianghui Solar Power Co. Ltd.) of approximately RMB 98,000,000; a decrease in the administrative expenses of approximately RMB 80,000,000 due to a decrease in total employee benefits, rental expense and other administrative expenses; and a decrease in the gain on disposal of subsidiaries, net of approximately RMB 47,000,000.