Launch Tech Company Limited provided preliminary unaudited consolidated earnings guidance for the year ended 31 December 2020. The company group is expected to record a substantial consolidated loss attributable to the shareholders for the year ended 31 December 2020. The group conservatively estimates that the expected loss will be similar to that of the previous year. The unaudited consolidated loss for the year ended 31 December 2020 amounted to approximately RMB 130,000,000, compared with that for the year ended 31 December 2019 of approximately RMB 137,000,000. Based on the information currently available, the Board believes the loss recorded by the company is mainly attributable to: (1) an increase in impairment of financial assets due to the uncertainty of the COVID-19 pandemic and the global economic environment; (2) a continuous increase in provision for impairment of intangible assets and R&D expenses; (3) an increase in foreign exchange losses due to the appreciation of RMB.