China Uptown Group Company Limited provided group earnings guidance for the year ended December 31, 2021. The board of directors of the company inform the shareholders of the company and potential investors that, based on the preliminary review of the unaudited management accounts of the Group for the year ended 31 December 2021 and the information currently available to the Board, the Group is expected to record a net loss of not less than RMB 200,000,000 for the year ended 31 December 2021 as compared to a net loss of RMB 7,211,000 for the year ended 31 December 2020. The expected net loss is mainly attributable to decrease in revenue attributable to lower contracted sales and recognition of properties sold, decline in gross profit margins, as well as the increase in impairment provision for properties held for sale due to lower selling prices of the properties held for sale and fair value loss on investment properties upon disposal and revaluation for the year ended 31 December 2021.

The significant increase in loss is a result of challenging operating conditions in the property sector, ongoing pandemic, and economic uncertainty leading to negative market sentiment that has affected the sector. The Group will continue to assess the impairment provision for properties held for sale.