The board of directors of Cathay Media and Education Group Inc. informed the shareholders and potential investors of the Company that, based on a preliminary assessment of the unaudited consolidated management accounts of the Group for the year ended 31 December 2021 and information currently available, it is expected that the Group recorded a decrease in consolidated profit for the year ended 31 December 2021 of at least 70% as compared to that of RMB 337.1 million for the year ended 31 December 2020. The expected decrease in consolidated profit for the year was mainly attributable to (i) a decrease in revenue and gain from TV/film production and investment business, (ii) an increase in provision for impairment loss on trade and other receivables of TV/film production and investment business, (iii) a provision for impairment loss on the bridging loans provided in connection with the acquisition of Olympic College of Nanjing Sport Institute and (iv) an impairment loss on goodwill of the Group's art entrance exam training services.