Veeko International Holdings Limited provided unaudited consolidated earnings guidance for the year ended March 31, 2020. The company preliminary assessment of the unaudited consolidated management accounts of the Group for the year ended 31 March 2020 and the information currently available, as compared to a loss of approximately HKD 79,000,000 recorded last year, the Group is expected to record a loss of approximately HKD 230,000,000 to HKD 300,000,000 for the year ended 31 March 2020 (including a one-off impairment loss of right-of-use assets and property, plant and equipment, inventories and other related provisions, as well as a decrease in fair value of investment properties totaling approximately HKD 45,000,000 to HKD 90,000,000). If excluding such non-cash impairment and provisions, the Group is expected to record a loss of approximately HKD 185,000,000 to HKD 210,000,000. Such increase in loss was mainly due to the drop in sales for both cosmetics and fashion segments of the Group amid sluggish consumption sentiments in Hong Kong and a continued weak retail environment since the social events beginning in mid-2019 and in particular since the outbreak of the novel coronavirus epidemic in January this year, which has affected economies around the world and of which the retail industry has borne the brunt. The above-mentioned provision for impairment loss of right-of-use assets and property, plant and equipment would be made in accordance with the Hong Kong Accounting Standard 36 that applies to the retail store assets, and the impairment losses arise due to losses at the Group's retail stores as a result of drastic decline in sales. Such provision for impairment losses is a non-cash item. As such, it has no impact on the Group's cash flows, operations and liquidity for the year ended 31 March 2020. As at the date of this announcement, the Group has sufficient cash on hand to meet its current business needs and has available banking facilities. The Group is principally engaged in cosmetics and fashion retail operations, but also holds investment properties and self-occupied properties at the same time. As at 31 March 2020, the market valuation of such properties amount to approximately HKD 700,000,000 in aggregate and serve as financial support for the Group. To cope with the challenges ahead, the Group has managed and will continue to manage its financial and cash position prudently and has taken and will take a number of contingency measures, which include but are not limited to negotiating with the landlords to lower rents, proactively reducing inventory levels, and stringently controlling costs and expenditures.