The board of directors of Ruicheng (China) Media Group Limited informed the shareholders of the Company (the "Shareholders") and potential investors that based on the preliminary assessment of the unaudited consolidated management accounts of the Group and the information current available to the Board for the six months ended 30 June 2020, the Group expects to record (i) a decrease in revenue of approximately 42% from approximately RMB 376 million for the six months ended 30 June 2019 to approximately RMB 217 million for the Period; and (ii) a decrease in net profit of approximately 38% from approximately RMB 13 million for the six months ended 30 June 2019 to approximately RMB 8 million for the Period. The decrease in revenue and net profit is mainly due to the outbreak and escalation of the novel coronavirus (COVID-19) globally and in the People's Republic of China during the Period, leading to reduced advertising budgets and thus reduced advertisement placing of the Group's customers. In particular, (i) some of the Group's customers suspended their advertising placements for mobile games, as the development progress of such games was drastically hindered by the outbreak and escalation of COVID-19; and (ii) the Group postponed its co-operation with certain customers of the Group's online advertising services to ensure the Group's operating cash flow, as such customers required longer credit periods, which would extend the time discrepancy between payment made to the Group's suppliers and payment received by the Group.