Readboy Education Holding Company Limited provides earnings guidance for the six months ended 30 June 2022. The Group is expected to record an unaudited consolidated loss attributable to the owners of the Company ranging from approximately RMB 40.0 million to RMB 45.0 million for the six months ended 30 June 2022 as compared to an unaudited consolidated profit attributable to the owners of the Company of approximately RMB 29.1 million for the corresponding period in 2021. Such expected loss is primarily attributable to a decrease in revenue of approximately RMB 95.4 million or 26.9% for the six months ended 30 June 2022 as compared to the corresponding period in 2021, which was primarily resulted from the decrease in sales of personal student tablets and wearable products due to the intensified COVID-19 pandemic control restrictions in place during the period affecting production schedule and the business of offline distributors.

As a result, gross profit decreased from approximately RMB 88.1 million for the six months ended 30 June 2021 to approximately RMB 66.5 million for the six months ended 30 June 2022. an increase in selling and distribution expenses of approximately RMB 9.1 million or 29.4% for the six months ended 30 June 2022 as compared to the corresponding period in 2021, due to increased advertising and marketing effort in line with the launch of new products and the expansion of marketing channel, e.g. social media, as the Group's business strategy; approximately RMB 47.8 million loss recognised from changes in fair value of financial liabilities at fair value through profit or loss in connection with the shares of the Company issued to the pre-IPO investors (a gain of approximately RMB 2.2 million was recognised for the corresponding period in 2021), primarily due to an increase in the value of the Company's equity which was measured based on the valuation techniques determined by the independent and qualified valuer.