The Sincere Company, Limited provided earnings guidance for the year ended 29 February 2020. Based on the preliminary review of the Group's unaudited management accounts for the year ended 29 February 2020 and other information currently available, the board of directors of the Company estimates that the Group would record an increase in loss attributable to shareholders of the Company for the year ended 29 February 2020 by a range of approximately 10%-15% as compared with that for the year ended 28 February 2019. The increase in expected loss attributable to the Shareholders was mainly due to the decrease in sales of the department store operations in Hong Kong; and the impairment on right-of-use assets related to the Department Store Operations, which was initially recorded in the accounts of the Group on 1 March 2019 in accordance with the adoption of the applicable accounting policy for leases. The social and political incidents in Hong Kong since June 2019 have negatively affected the retail market sentiment of Hong Kong in general and reduced the number of visitors from Mainland China. The threat of the China-US trade war further deteriorated the consumer sentiment. On the other hand, the Group's deteriorating performance was partially offset by the rental concessions obtained during the second half of 2019.