China Digital Culture (Group) Limited provided group earnings guidance for the quarter ended 31 March 2020. The Group expects to record a net loss for the three months ended 31 March 2020 as compared to a net profit for the corresponding period of last year. Such decrease in profit is mainly attributable to the following: the severe global economic recession due to the COVID-19 pandemic and the decrease in gain from disposal of subsidiaries. The Company is in the process of finalizing the first quarterly results of the Group. The information contained in this announcement is only based on the preliminary assessment by the Board with reference to the unaudited consolidated management accounts of the Group for the three months ended 31 March 2020 and information currently available to the Board, which will be finalized by the management of the Company and reviewed by the audit committee of the Company in May 2020. The actual results of the Group for the three months ended 31 March 2020 may be different from what is disclosed in this announcement.