Beijing North Star Company Limited provided group earnings guidance for the year ended 31 December 2022. Based on the preliminary assessment by the Company's finance department: Loss attributable to owners of the company (excluding gains or losses from changes in fair value of investment properties) for the year of 2022 is estimated to range from RMB 1,071,259,000 to RMB 1,240,743,000, representing a loss as compared with the profit for the corresponding period of the preceding year. Loss (excluding gains or losses from changes in fair value of investment properties and after deduction of non-recurring profit and loss) attributable to owners of the Company for the year of 2022 is estimated to range from RMB1,121,257,000 to RMB1,300,744,000, representing a loss as compared with the profit for the corresponding period of the preceding year. Main Reasons for the Estimated Losses in Results for the Relevant Period: The Company's operation of convention and exhibition centers (including hotels) and commercial properties was time and again affected by the pandemic, with conference and exhibition centers, hotels and apartments being in stagnation for a long time, affecting the profit level of the Company. The real estate development segment was affected by macroeconomic regulation and control and settlement cycle changes, the settlement floor area was reduced, and the gross profit quality of the project that can be settled as revenue tended to be low. At the same time, as affected by the market environment, certain real estate projects of
the Company showed signs of impairment. The Company conducted a preliminary impairment test on its inventories in accordance with accounting standards and expected to make provisions for the impairment of inventories on certain real estate projects, resulting in a comparatively substantial decline in profits for the segment.