Dashan Education Holdings Limited provided earnings guidance for the year ended December 31, 2021. For the year, the group expected to record net loss of more than RMB 50 million for FY2021, compared with the net profit of approximately RMB 2.1 million for the year ended 31 December 2020. The Board considers that the main reasons for the expected net loss of the Group for fiscal year 2021 are as follows: the Suspended Centres were suspended since late June 2021 for regular safety screening until further approval by the local authorities; the Group temporarily closed its self-operated teaching centres in Zhengzhou city as a result of the severe flooding in Henan Province since July 21, 2021; physical classes in the Group's self-operated teaching centres were suspended since July 31, 2021 as a result of the COVID-19 Resurgence in Henan Province; and the Group has closed a majority of its self-operated teaching centres for the Existing Business since August 2021 as a result of the restrictions on the Existing Business imposed by the implementation of the Opinion, where the Group has been carefully considering the plan to reorganise its assets and resources for potential new businesses.