Values Cultural Investment Limited provided earnings guidance for the year ended December 31, 2020. For the year, the company expected that the Group will record a net profit of no more than RMB 2 million as compared to the Group's net profit amounting to approximately RMB 24.64 million for the year ended 31 December 2019. The Board believes that the decrease in profit is due to a decrease in revenue of approximately RMB 125 million and an increase in net impairment loss of approximately RMB 19 million. The Board believes that the expected deterioration of the Group 's financial performance was mainly due to: (i) the impact of the novel coronavirus pandemic, which led to slowdown of the Group's business activities. The delay in kicking off TV series projects under development by the Group, and certain TV series in which the Group acted as executive producer and/or non-executive producer failed to be broadcasted according to the expected schedule, have led to a decrease in revenue. Meanwhile, due to the COVID-19 pandemic, the Group reduced its marketing and promotion activities in order to comply with social distancing measures and therefore was not able to reach an agreement regarding the price and the broadcasting schedule of certain key TV series with its customers; and (ii) the increase in provision for impairment of financial assets due to the long-aged trade receivables from certain customers.