Item 8.01. Other Events.
China Carbon Graphite Group, Inc. (the “Company”) is
providing the following update on the filing of its Form 10-K for the fiscal year ended December 31, 2019. As a
result of the global outbreak of the COVID-19, starting in China at the end of January 2020, the Company is unable to
meet the filing deadline of the Form 10-K. The Company’s business and facilities are all located in China. In order to avoid
the risk of the virus spreading, the Chinese government required enterprises to delay the resumption of work and production. The
Company has been following the recommendations of local health authorities to minimize exposure risk for its team members for the
past several weeks, including the temporary closures of its offices and having team members work remotely, and, as a result, the
Form 10-K will not be completed by the filing deadline, due to insufficient time to facilitate the internal and external review
process.
In accordance with the order (the “Order”) promulgated
by the Securities and Exchange Commission on March 4, 2020 in Release No. 34-88318 relating to the Securities Exchange Act
of 1934, as amended, the Company currently expects to file its Annual Report on Form 10-K approximately 45 days after
March 30, 2020, which shall be no later than May 14, 2020. The Company will evaluate its need for an additional extension
under Rule 12b-25 at that time, as contemplated by the Order.
The Company is supplementing the risk factors explaining the impact
of COVID-19 on its business:
We are susceptible to general economic conditions, natural catastrophic
events and public health crises, market downturns and changes in supply chains and sales demand could adversely affect our operating
results.
Our operating results will be subject to fluctuations based on general
economic conditions, in particular those conditions that impact graphite products industry. Deterioration in economic conditions
could cause decreases in both retail and wholesale trade volume and reduce and/or negatively impact our short-term ability to grow
our revenues. Further, any decreased collectability of accounts receivable or early termination of agreements due to deterioration
in economic conditions could negatively impact our results of operations.
Furthermore, our business is subject to the impact of natural catastrophic
events such as earthquakes, floods or power outages, political crises such as terrorism or war, and public health crises, such
as disease outbreaks, epidemics, or pandemics in the U.S. and global economies, our markets and business locations. Currently, the
rapid spread of coronavirus (COVID-19) globally has resulted in increased travel restrictions and disruption and shutdown
of businesses. We may experience impacts from quarantines, market downturns and changes in customer behavior related to pandemic
fears and impacts on our workforce if the virus becomes widespread in any of our markets. If the virus were to affect a significant
number of our workforce employed in our business-to-business and business-to-customer sales operation, we may experience delays
or the inability to deliver our products to customers on a timely basis. In addition, our manufacture process rely on raw materials
and components provided by our suppliers. If the ongoing quarantining measures cause delays along our supply chain, we will likely
experience manufacture slow-down for the indefinite future. Our customers include mainly domestic customers and we generally do
not enter into long-term contracts with our customers; one or more of our customers, distribution partners, service providers or
suppliers may experience financial distress, file for bankruptcy protection, go out of business, or suffer disruptions in their
business due to the coronavirus outbreak; as a result, our operation revenues may be impacted. The extent to which the coronavirus
impacts our results will depend on future developments, which are highly uncertain and will include emerging information concerning
the severity of the coronavirus and the actions taken by governments and private businesses to attempt to contain the coronavirus,
but is likely to result in a material adverse impact on our business, results of operations and financial condition at least for
the near term.
Forward-Looking Statements
Statements in this Current Report on Form 8-K are “forward-looking
statements” as the term is defined under applicable securities laws. These statements include the anticipated timing of the
filing of Company’s quarterly and annual statements under the Exchange Act; the expected impact of the COVID-19 virus
outbreak on the Company’s financial reporting capabilities and its operations generally and the potential impact of such
virus on the Company’s customers, distribution partners, advertisers and production facilities and other third parties. These
and other forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ
materially from those statements. Such risks and uncertainties are, in many instances, beyond the Company’s control. Forward-looking
statements, which are presented as of the date of this filing, will not be updated to reflect events or circumstances after the
date of this statement except as required by law.