Guangdong Yueyun Transportation Company Limited provided earnings guidance for the six months ended June 30, 2020. The board of directors of the company announced that based on the financial information currently available to the company, it is expected that the Group will incur a net loss attributable to shareholders of the parent company of no more than RMB 133,000,000 for the six months ended 30 June 2020 (the corresponding period of last year: net profit attributable to shareholders of the parent company of RMB 185,652,000 (unrestated)). The expected loss was mainly due to the impact of the COVID-19 epidemic in the first quarter of 2020.

The government took various prevention and control measures against the Epidemic, including suspension of operation, close of stations, reduction of routes and other travel restrictions and control to effectively stop the spread of the Epidemic, which resulted in a significant decrease in the routes and carriage rate of the Group's road passenger transportation and auxiliary services business. Meanwhile, toll fee exemption was implemented for Taiping Interchange from February to May 2020 in compliance with the requirements of the government. The aforementioned circumstances had a negative impact on the Group's operating results, which lead to the expected loss.