Central China New Life Limited provided unaudited consolidated earnings guidance for the year ended 31 December 2023. For the period, the group expects to record an unaudited consolidated net loss ranging from RMB 500 million to RMB 700 million for the period, compared with the unaudited consolidated net profit of the Group of RMB 570 million for the year ended 31 December 2022. The anticipated unaudited net loss is primarily attributed to the following factors.

First, the Group adheres to prudent principles in conducting impairment tests on trade receivables and financial assets. Due to the liquidity crisis stemming from the downturn in the real estate industry, the credit risks associated with trade receivables from real estate developers have escalated, necessitating higher impairment provisions. Second, the Group has proactively adjusted and reduced the scale of its value-added services to non-property owners business segment in response to sluggish sales in the real estate sector.

This strategic decision has led to a decline in revenue and profitability from this segment.