China Huarong Asset Management Co., Ltd. provided earning guidance for the year 2023. Based on preliminary calculation, the Group's net profit attributable to equity holders of the Company in 2023 is expected to range from RMB 1 billion to RMB 2 billion (net loss attributable to equity holders of the Company in 2022 was RMB 27.581 billion). In 2023, the Group followed the general ideology of "consolidating foundation, seeking progress while maintaining stability, and improving quality and efficiency", and accelerated risk resolution, transformation and development with a strong momentum of "starting the year with burst of vigor". The Group achieved positive results across various businesses and continued to consolidate and expand the upward momentum, and the operating results in 2023 turned from losses to profits, mainly due to: (i) deepening of business synergy, proactive efforts in market expansion, and strengthening of asset management, coupled with a year-on-year increase in gains and losses from changes in fair value of equity assets due to improving trend in the capital market as compared to a year ago, contributed positively to the Company's profit for the year; (ii) special opportunities in making successful major investments with improved asset structure and optimized asset allocation; (iii) the impact of economic environment and industry as a whole which resulted in the Group recognizing asset impairment losses and unrealized losses on change of fair value of approximately RMB 40 billion in order to further consolidate assets, offsetting the Group's profit for the current period but laying the foundation for sustainable and healthy development in the future. In 2024, the Group will continue to focus on its strategic goals of "one-three-five", adhere to the general ideology of "consolidating foundation, seeking progress while maintaining stability, and improving quality and efficiency", maintain strategic focus, strengthen confidence in development, focus on its core businesses, firmly grasp development opportunities in the distressed assets
industry, and leverage the CITIC Group's advantages in industry-finance integration to proactively adjust and optimize assets allocation and business structure, so as to continue to enhance quality and efficiency of business operation and achieve high-quality development.