Changsha Broad Homes Industrial Group Co., Ltd. based on the preliminary assessment made by the management of the company on the unaudited consolidated management accounts of the Group for the year ended December 31, 2020 and the information currently available to the Group, the Group's profit for the Period is expected to decrease by 50% to 75% as compared to the same period of 2019, which is mainly due to the fact that (i) the Company's major income source gradually shifted to PC unit business with the implementation of the "Broad Homes United Program" and the gradual expansion of joint factories to form a nationwide layout, and affected by the pandemic of Novel Coronavirus, the construction progress of certain joint factories was delayed, leading to over 80% decrease in equipment income; and (ii) since 2018, to better respond to the pressure from implementation of the "Broad Homes United Program" on the Company's management resources and incentivize its business partners, the Company made adjustment to the management and control models of certain joint factories after considering the management cost, decision-making efficiency, willingness of business partners and other factors, and the changes of management and control models of most joint factories were completed in 2018 and 2019, leading to over 70% decrease in gains on loss of significant influence in associates recorded in 2020 as compared with the same period of last year.