The board of directors of Huifu Payment Limited announced that, based on a preliminary review of the unaudited management accounts of the Group for the six months ended 30 June 2020 (the "Period") and assessment of the latest information currently available to the Board, the Group is expected to report a net loss of about RMB 95 million to RMB 115 million for the Period as compared to a net profit of approximately 142 million for the corresponding period in 2019. The adjusted net profit for the Period, which does not take the share-based payment expenses into account, is expected to be approximately RMB 80 million to RMB 90 million, as compared to approximately RMB 153 million for the corresponding period in 2019, which is approximately a 41% to 48% decrease year-over-year. The decrease is mainly attributed to (i) the impact of the COVID-19 pandemic on the business of the Group, which caused the decrease in revenue generated from the traditional payment services; and (ii) the increase of the share-based payment expenses as a result of the grant of the restricted share units under the share award scheme adopted on August 2019 by the Company (the "Scheme") has been fully recognized in this Period. The Scheme will not generate further share-based payment expenses in future reporting periods.