The board of directors of the Company Arts Optical International Holdings Limited informed the shareholders of the Company and potential investors that based on the Company's preliminary review of the unaudited consolidated management accounts of the Group for the four months ended 30th April, 2020, the Group is expected to record a substantial loss for the six months ending 30th June, 2020. The loss attributable to owners of the Company for the Period is anticipated to record an increase of not less than 30% as compared to the loss attributable to owners of the Company of HKD 54.5 million for the six months ended 30th June, 2019. This is mainly attributable to the following: (i) the outbreak of COVID-19 in early 2020 which has adversely impacted global business activities and resulted in decrease in sales volume and deferral of the orders from the Group's customers in Europe, the United States and Asia; and (ii) reduction in customer demand has resulted in surplus production capacity and an increase in production costs has led to intensified competition in the optical frame market as well as margin erosion pressure on the Group.