Ann: Market Update, page-34

This is an entirely responsible and prudent announcement.

" ... The Board of PET today announces that due to new outbreaks of Covid-19 in several countries but particularly in China and the US we are adopting an extremely cautious attitude to our short-term forecasts. While no projects have been cancelled – and, in our opinion, are unlikely to be affected in size or scope, there are concerns that, in the event of substantial secondary outbreaks, some projects will be delayed in order for governments to deal with more immediate health problems.

Accordingly, we are reducing our short-term revenue expectations for the remaining six months of this year. We are now forecasting a revenue range of $30 – 40 million for full year 2020. While this is a substantial reduction over our previous forecast range, if achieved it would result in a sales increase of approximately 40%, at the midpoint, over last year.

It is to be stressed that we are continuing unchanged with our plans to substantially increase our production capacity; final determinations are being made to supply contracts for the building of the new production facility which will have an initial capacity of 20,000 tpa with the ability to double that quickly as required.

Management is keen to keep the market fully informed of all business activities and to take a conservative approach in these uncertain times. Material changes to forecasts over the weekend prompted this revision.The Company’s Balance Sheet remains strong with $35 million in cash and $16 million in receivables from primarily government bodies. ..."

This TH and announcement is just to let us all know at once, so that there will be no surprises for us as co-owners of the company. Would all you nay-sayers prefer to have such surprises dropped into your lap unannounced?

With COVID-19 on the loose again right in the heart of Beijing's food distribution network there is at least some chance of disruption to things there that will ripple across to those government run projects that concern us. I am just pleased that the co is thinking and acting so prudently.