Reach New Holdings Limited announced that based on a preliminary review of the Group's unaudited consolidated management accounts for the six months ended 30 June 2020 and the information currently available, the Group is expected to record a drop in revenue of approximately RMB 14.8 million to approximately RMB 25.3 million for the six months ended 30 June 2020, as compared to that of approximately RMB 40.1 million for the six months ended 30 June 2019. The Group is expected to record a loss attributable to the owners of the Company of approximately RMB 4.8 million for the six months ended 30 June 2020, comparing with that of approximately RMB 1.7 million for the six months ended 30 June 2019. The drop in revenue was mainly attributable to (i) the outbreak of the COVID-19 pandemic which caused disruption to the economic and production activities during the six months ended 30 June 2020 in the People's Republic of China, including the production activities of the customers of the Group, which engage in the garment manufacturing; (ii) the continuous cost reduction measures taken by the Group's customers, given the advent of trade protectionism and continuing trade disputes between the PRC and the United States of America; (iii) the challenging macro-economic environment and the PRC's slower economic growth, which drove down the demand in garment market; (iv) the keen price competition in garment market; and (v) some of our customers shifted their production base to Southeast Asia for the purpose of lowering production cost and to lessen the impact of the trade disputes between the USA and the PRC.