Koolearn Technology Holding Limited provided earnings guidance for the year ended 31 May 2020. The board of directors of the Company wishes to inform the shareholders of the Company and potential investors that, based on a review of the Group's unaudited consolidated management accounts currently available to the Board, the Group is expected to record a substantial net loss for the year ended 31 May 2020 ("FY 2020") of between RMB700 million and RMB 800 million, compared to RMB 64 million of net loss for the year ended 31 May 2019. The loss was mainly attributable to: an increase in the Group's selling and marketing expenses; research and development expenses; costs of revenue, compared to Fiscal Year 2019; and costs and expenses relating to grants under the employee share incentive scheme. The increase in selling and marketing, research and development expenses and costs of Revenues were primarily the result of a substantial increase in: the Group's hiring of teaching and administrative staff, engineering talent, and investment in maintaining and expanding the front-end and back-end technology, including newly-developed ECCP system, which the company have developed and are maintaining solely in house, with a view to invest in the long-term development and expansion of the infrastructure underlying the K-12 business.