Values Cultural Investment Limited provided earnings guidance for the six months ended 30 June 2022. The Group for the six months ended 30 June 2022, it is expected that the Group will record a net loss ranging from approximately RMB 11.0 million to RMB 16.0 million for the Reporting Period, as compared to the Group's net loss amounting to approximately RMB 27.9 million for the six months ended 30 June 2021. The Board believes that the net loss was mainly due to the impact of the COVID-19 pandemic during the Reporting Period which led to the change of distribution plans of certain self-produced TV series.

As a result, the expected future distribution income decreased and the Company wrote down inventories to net realizable value which led to an increase in cost. The amount of net loss for the Reporting Period decreased as compared to that for the six months ended 30 June 2021 mainly due to: (i) the increase in income resulting from the sale of certain purchased TV series; and (ii) the decrease in impairment losses on financial assets due to the repayment of some long-aged trade receivables by customers during the Reporting Period.