Transmit Entertainment Limited provided consolidated earnings guidance for the year ended 30 June 2020. It is expected to record a net loss attributable to the owners of the Company in the range of approximately HKD 120 million to HKD 140 million as compared to the net loss attributable to owners of the Company of approximately HKD 35.5 million for the year ended 30 June 2019. It was mainly attributable to (i) the serious delays in scheduled execution of TV series and variety shows production projects of the Group during the Year due to compulsory suspension of work caused by the outbreak of COVID-19, which has led to a delay in revenue recognition for this segment; (ii) the stagnated film exhibition business and hence the decrease in its income due to the impact of epidemic prevention and control policies as well as the market sentiment; and (iii) the application of Hong Kong Financial Reporting Standard 16 Leases ("HKFRS 16") since 1 July 2019, which results in a higher total charge to the statement of profit or loss in the first few years of the lease, and such expenses will decrease during the latter part of the lease terms. There is no impact on the cumulative expenses recognized during the remaining lease terms since the adoption date of HKFRS 16. Accordingly, the effects of the application of HKFRS 16 resulted in an increase in corresponding expenses recognised during the Year as the Group currently operates numerous cinemas in Hong Kong.