The Company is unable
to meet the filing deadline for the filing of its Annual Report on Form 10-K (the “2019 Annual Report”) due to circumstances
related to COVID-19. The primary operations and businesses of the Company are conducted in Hubei province, which is the epicenter
of the COVID-19 pandemic, and Guangdong province in China. Since January 2020, both provinces have been under strict quarantine
control and travel has been severely restricted. In addition, a large number of the Company’s employees have been or are
in mandatory self-quarantine and the entire business operations of the Company has been restricted since January 2020. As a result,
the Company’s finance team will be unable to complete the preparation of the Company’s consolidated financial statements
and the 2019 Annual Report until after March 30, 2020. The Company is working closely with the local government agencies to restore
its local operations back to normal.
The Company is relying
on SEC Release No. 34-88465 dated March 25, 2020 to delay the filing of the 2019 Annual Report and expects to file the 2019 Annual
Report no later than May 14, 2020 (which is 45 days from the original filing deadline of March 30, 2020). The Company will work
diligently to comply with such requirements.
Supplemental Risk Factor
In light of recent developments
relating to the COVID-19 pandemic, the Company is supplementing in this Current Report on Form 8-K with the following risk factor:
Our business operations have been and may continue to be materially
and adversely affected by the outbreak of the coronavirus disease (COVID-19).
An outbreak of respiratory illness caused by COVID-19 emerged in
Wuhan city, Hubei province, PRC, in which province a part of the Company’s primary operations and businesses are located,
in late 2019 and has been expanding within the PRC, including Guangdong province, where the remaining part of the Company’s
operations and businesses take place, and globally. The new strain of COVID-19 is considered to be highly contagious and poses
a serious public health threat. On January 23, 2020, the PRC government announced the lockdown of Wuhan city in an attempt to quarantine
the city. Since then, other measures including travel restrictions have been imposed in other major cities in the PRC and throughout
the world in an effort to contain the COVID-19 outbreak. The World Health Organization (the “WHO”) is closely monitoring
and evaluating the situation. On March 11, 2020, the WHO declared the outbreak of COVID-19 a pandemic, expanding its assessment
of the threat beyond the global health emergency it had announced in January.
Any outbreak of such epidemic
illness or other adverse public health developments in the PRC or elsewhere in the world may materially and adversely affect the
global economy, our markets and our business. In the first quarter of 2020, the COVID-19 outbreak has caused disruptions in our
manufacturing operations, which have resulted in delays in the shipment of products to certain of our customers. A prolonged disruption
or any further unforeseen delay in our operations of the manufacturing, delivery and assembly process within any of our production
facilities could continue to result in delays in the shipment of products to our customers, increased costs and reduced revenue.
We cannot foresee whether
the outbreak of COVID-19 will be effectively contained, nor can we predict the severity and duration of its impact. If the outbreak
of COVID-19 is not effectively and timely controlled, our business operations and financial condition may be materially and adversely
affected as a result of the deteriorating market outlook, the slowdown in regional and national economic growth, weakened liquidity
and financial condition of our customers or other factors that we cannot foresee. Any of these factors and other factors beyond
our control could have an adverse effect on the overall business environment, cause uncertainties in the regions where we conduct
business, cause our business to suffer in ways that we cannot predict and materially and adversely impact our business, financial
condition and results of operations.
Forward-Looking Statements
Certain of the statements
contained in this Current Report on Form 8-K should be considered forward-looking statements within the meaning of the Securities
Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995.
These forward-looking statements may be identified by words such as “may,” “will,” “expect,”
“intend,” “anticipate,” “believe,” “estimate,” “plan,” “project,”
“could,” “should,” “would,” “continue,” “seek,” “target,”
“guidance,” “outlook,” “if current trends continue,” “optimistic,” “forecast”
and other similar words. Such statements include, but are not limited to, statements about the Company’s plans, objectives,
expectations, intentions, estimates and strategies for the future, and other statements that are not historical facts. These forward-looking
statements are based on the Company’s current objectives, beliefs and expectations, and they are subject to significant risks
and uncertainties that may cause actual results and financial position and timing of certain events to differ materially from the
information in the forward-looking statements. There may be other factors of which the Company is not currently aware that may
affect matters discussed in the forward-looking statements and may also cause actual results to differ materially from those discussed.
In particular, the consequences of the COVID-19 outbreak to economic conditions and the industry in general and the financial position
and operating results of the Company in particular have been material, are changing rapidly, and cannot be predicted. The Company
does not assume any obligation to publicly update or supplement any forward-looking statement to reflect actual results, changes
in assumptions or changes in other factors affecting these forward-looking statements other than as required by law. Any forward-looking
statements speak only as of the date hereof or as of the dates indicated in the statement.