Solargiga Energy Holdings Limited provided that based on a preliminary assessment on the unaudited management accounts of the Group for the year ended 31 December 2019, although external shipment increased from approximately 2,797MW in 2018 to 4,134MW and revenue increased from approximately RMB 4,000 million to RMB 4,400 million, which represented increases of approximately 48% and 10% respectively, it is expected that the Group will record a loss of approximately RMB 334 million for the year ended 31 December 2019, as compared to a loss of approximately RMB 221 million in 2018. To the best of the Directors' knowledge, information and belief, having made all reasonable enquiries, the increase in loss was mainly because: (1) unit selling prices has dropped rapidly during 2019 and China's photovoltaic power subsidy policy was introduced later than expected, industry players generally hold a wait-and-see attitude, resulting in a year-on-year decrease in Chinese domestic photovoltaic installation; (2) The production capacity of the Group's new low-cost high-efficiency monocrystalline silicon ingots and wafers located in Yunnan Qujing only completed the testing and adjustment at the end of 2019. Hence mass production was not yet achieved during the year; and (3) On-going technical transformation and upgrading was performed on the existing production equipment in the manufacturing base in Liaoning Jinzhou. Although they have been completed by the end of 2019, it has affected the annual production efficiency and hence led to the benefits of economy of scale not being fully demonstrated.