The board of directors (the "Board") of Tian Ge Interactive Holdings Limited informed the shareholders of the Company (the "Shareholders") and potential investors of the Company that, based on the preliminary assessment of unaudited information currently available to the Company, it is anticipated that the unaudited net profit of the Group for the six months ended 30 June 2018 and the second quarter of 2018 will increase substantially for over 70% and 200%, respectively, as compared to the corresponding periods in 2017. The net profit increase was primarily attributable to the significant increase in fair value change of financial assets at fair value through profit or loss and a decrease of employee's share-based payments despite a decrease in turnover and an increase in impairment losses. The increase of fair value gain was mainly caused by the significant increase in the valuation of one of the unlisted equity securities held by the Company based on re-valuation result. The impairment losses were mostly attributable to its investment in an associate and the intangible assets and goodwill related to one of its subsidiaries after re-assessing the recoverable amount of these assets.