Changsha Broad Homes Industrial Group Co., Ltd. provided earnings guidance for the year ended December 31, 2022. For the year, the company expected to record a loss of approximately RMB 700 million to RMB 850 million, as compared to the profit of approximately RMB 31.532 million for the year ended December 31, 2021, which was mainly due to the fact that during the Year, (i) the revenue from prefabricated PC units of the subsidiaries in the Beijing-Tianjin-Hebei region, Shanghai, Zhejiang and Hunan decreased by approximately RMB600 million as compared to the same period of last year as a result of the industry regulation, control measures for the pandemic of COVID-19 and the spread of the pandemic after lifting the control measures; (ii) with the gradual completion of the strategic layout of joint factories across the country, the demand of PC equipment by these factories decreased and the revenue from PC equipment decreased by approximately RMB 220 million as compared to the same period of last year; (iii) increase in provision for loss allowance on receivables; and (iv) the decrease in fair value of financial assets at fair value through profit or loss as a result of the industry environment.