Guangdong Tannery Limited provided consolidated earnings guidance for the six months ended 30 June 2020. The consolidated net loss of the company for the six months ended 30 June 2020 is expected to decrease by over 40% as compared to the consolidated net loss of HKD 22.11 million for the corresponding period in 2019. The expected decrease in the consolidated net loss was mainly due to the following factors: The gross loss was reduced due to the sale of inventory previously provided during current period resulting in an increase of reversal provisions for inventories; A decrease in administrative expenses which was mainly attributable to a reduction in employee compensation and research and development expenses compared to the same period of last year.; and A reversal of impairment loss in accounts receivable was made for the period; whereas an impairment loss of accounts receivable was made for the corresponding period of last year.