The Board of Alibaba Pictures Group Limited to inform the Shareholders and potential investors that, based on its preliminary assessment of the latest unaudited consolidated management accounts of the Group, it is expected that the net loss attributable to owners of the Company to be recorded by the Group for the financial year ended March 31, 2020 will range between RMB 1,100 million and RMB 1,200 million, compared with a similar loss of approximately RMB 254 million for the financial year ended March 31, 2019. The significant increase in the aforesaid loss was primarily due to the complicated difficulties in pursuing profitable operation faced by the entertainment industry in mainland China since 2019 and the significant decrease in the Group's revenue in the fourth quarter of the 2019/2020 Financial Year as a result of the outbreak of COVID-19, as well as the substantial impairment provisions made by the Group for certain receivables and investment project(s) during the 2019/2020 Financial Year.