The board (the "Board") of directors of Gudou Holdings Limited informed the shareholders (the "Shareholders") and potential investors of the Company that, based on its preliminary review of the unaudited consolidated management accounts of the Group for the three months ended 31 March 2020 (the "Period"), the Group is expected to record an unaudited net loss of approximately RMB 22 million for the Period, representing an increase by approximately RMB 14 million as compared with that for the corresponding period in 2019. The above expected increase in net loss is mainly attributable to a significant drop in the unaudited revenue from Gudou Hot Spring Resort operated by the Group (the "Operation") resulting from the temporary suspension of the Operation in response to the precautionary policies and measures implemented by the Guangdong provincial government to deter the spread of novel coronavirus pneumonia (COVID-19).