Beijing North Star Company Limited provided preliminary unaudited earnings guidance for the half year ended 30 June 2022. For the period, the company expects the profit attributable to owners (excluding gains or losses from changes in fair value of investment properties) is estimated to range from negative RMB 367.54 million to negative RMB 452.44 million, representing a loss as compared with the corresponding period of the preceding year. Profit (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 is estimated to range from negative RMB 388.84 million to negative RMB 479.04 million, representing a loss as compared with the corresponding period of the preceding year.

Main reasons for the estimated losses in results for the relevant period: The operation of convention and exhibition and investment properties segment were significantly affected by the pandemic in the first half of the year, in particular with conference and exhibition, hotels and apartments being at a standstill for a long time since April 2022, affecting the profit of the Company. The development properties segment was affected by macro regulation, settlement cycle and changes of settlement products, with a year-on-year decrease in revenue and profit. 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.