The board of directors of InvesTech Holdings Limited informed the shareholders of the Company and potential investors that, based on a preliminary review of the unaudited management accounts (the "Management Accounts") of the Group for the six months ended 30 June 2020 and assessment of the information currently available to the Board, it is expected that the Group would record an increase in net loss for first half 2020 in the range of approximately RMB 65.0 million to RMB 70.0 million as compared with that of approximately RMB 15.8 million recorded for the six months ended 30 June 2019. The increase in net loss for first half 2020 was mainly attributable to the recognition of an impairment loss against goodwill in relation to the network system integration cash-generating unit arose from the acquisition of Fortune Grace Management Limited in 2015, which was mainly caused by (i) the slowdown in the global economy caused by the outbreak of the novel coronavirus (COVID-19) pandemic in first half 2020 while the Group foresees the unfavorable global economic condition would exist in the coming years resulting from the conservative sales order made by the customers; (ii) the intense relationship between the United States of America (the "US") and the People's Republic of China ("China") which may affect the Group's business development of network infrastructure and software; and (iii) the stagnant business development in respect of the agency agreement entered into between the Group and IBO Technology Company Limited (details of which are set out in the announcement of the Company dated 15 June 2020).