Values Cultural Investment Limited provided group earnings guidance for the six months ended 30 June 2020. For the six months, the company expected that the Group will record a net loss ranging from approximately RMB 6 million to RMB 7 million for the Reporting Period, as compared to the Group's net profit amounting to approximately RMB 15.1 million for the six months ended 30 June 2019. The Board believes that the expected deterioration of the Group's financial performance was mainly due to: (i) the significant decrease in revenue as certain TV series in which the Group acted as executive producer and/or non-executive producer failed to be broadcasted in the Reporting Period according to the expected schedule as a result of the impact of the novel coronavirus pandemic. Due to the COVID-19 pandemic, the Group reduced its marketing and promotion activities and therefore was not able to agree the price and broadcasting schedule of certain key TV series with its customers; and (ii) the increase in provision for impairment of financial assets for the Reporting Period due to the long aged trade receivables from certain customers.