TravelSky Technology Limited based on the preliminary assessment by the Board of the internal unaudited consolidated management accounts of the Group, as compared to a net loss of approximately RMB 306 million for the six months ended 30 June 2020 as disclosed in the interim results announcement for the year 2020, the Group is expected to record a net profit ranging from approximately RMB 400 million to approximately RMB 450 million for the year ended 31 December 2020 (a net profit of approximately RMB 2,602 million is recorded for the corresponding period of 2019 as disclosed in the annual results announcement for the year 2019), which is mainly attributable to that (1) as affected by the Epidemic, the PRC and foreign countries have adopted various strict measures to curb the spread of the Epidemic, which resulted in a significant decline in the number of passenger transportation in civil aviation industry. In the second half of 2020, with the prevention and control of the Epidemic in China being further stabilized and normalized, the recovery of transportation in civil aviation industry has gradually accelerated; and (2) as disclosed in the announcement of the Company dated 12 June 2020 in relation to the deemed disposal of 68.39% equity interests in TravelSky Mobile Technology Limited, the transaction will have a financial impact on the Company. Given that the transaction has been completed in the second half of 2020, its financial impact will be reflected in the financial statements for the year of 2020.