The board of directors of Yuanda China Holdings Limited announced that, based on a preliminary assessment of the latest unaudited management accounts of the Group for the six months ended 30 June 2020 (the "Period") and other information currently available, the Group is expected to record a loss attributable to equity shareholders of the Company of not more than RMB 250 million for the Period as compared with the loss attributable to equity shareholders of the Company of approximately RMB 59.7 million for the corresponding period in 2019. The Board considers that the deterioration in results for the period was primarily due to the unprecedented Novel Coronavirus ("COVID-19") pandemic affecting many countries such as China, the United States, United Kingdom, the European Union and other major countries of the world simultaneously. Quarantine measures and temporary lock-down taken by multiple countries led to a temporary suspension or prolongation of construction projects. The Group will continue to closely monitor the development of the COVID-19 pandemic, pay close attention to cash flow management, integrate existing resources and actively adjust business plans to ensure stability in transition amid such difficult times while making full preparation for business recovery after the COVID-19 pandemic.