The board of directors of Newborn Town Inc. announced that, based on the preliminary review of the unaudited consolidated management accounts of the Group for the six months ended 30 June 2020 and other information currently available to the Company, it is expected that, for the six months ended 30 June 2020, (i) the Group will record a net loss of not more than RMB 3 million as compared with a net profit for the corresponding period in 2019; and (ii) the Group will record positive adjusted net profit, down by more than 50% as compared with the corresponding period in 2019. This is primarily attributable to: (i) in respect of the expected net loss, the shared-based compensation expenses due to completion of grant of the restricted share units by the Company in the first half of the year to better attract and motivate employees in the long term; and (ii) in respect of the expected net loss and decrease in adjusted net profit, the decrease in revenue from the Company's programmatic advertising platform business as compared with the corresponding period in 2019 as the Company scaled down the development of such business in view of the outbreak of novel coronavirus epidemic and economic downturn, and the Company's increased efforts in research and development and promotion on its social networking apps and game apps.