China 21st Century Education Group Limited provided unaudited consolidated earnings guidance for the year ended December 31, 2021. The group expects to record a decrease of 50% to 70% in net profit for the Relevant Period from that of approximately RMB 78.8 million for the year ended 31 December 2020. Such decrease was mainly due to the regulatory policies on the education industry in China, resulting in (i) the suspension of K9 afterschool tutoring business; (ii) the provision of goodwill made for certain mergers and acquisitions; and (iii) the loss provision made for certain investment in financial assets leading to one-off impairment on financial assets.

As the abovementioned impairment is provided on an one-off basis for the Relevant Period, the Board is confident in the Company's long-term development and prospects.