Glorious Property Holdings Limited provided earnings guidance for the year ended December 31, 2022. For the year, the group expected to record a loss attributable to the owners of the Company not exceeding RMB 500.0 million for the year ended 31 December 2022, as compared to the loss attributable to the owners of the Company of RMB 5,150.0 million for the year ended December 31, 2021. The reduction in loss was primarily attributable to the combined effect of, among others: the Group newly completed and delivered properties of two projects in Shanghai and Beijing during 2022 such that the recognised revenue for the year ended December 31, 2022 increased by approximately 100% as compared to that of 2021.

Because these properties completed and delivered are premium properties with high profit margin, as compared to a negative gross margin of 32.9% and gross loss of RMB 1,091.1 million for 2021, the Group is expected to improve with positive gross margin of exceeding 60% and gross profit of approximately RMB 4,000.0 million for the current year; the Group is expected to record a small amount of provision for impairment for the Group's properties during the year ended December 31, 2022, which was substantially lower than RMB 977.4 million for 2021; the Group wrote off certain aged prepayments and deposits of RMB 955.6 million during the year ended 31 December 2021. Such write-off was one-off and did not recur for the year ended 31 December 2022; the Group's gross finance costs decreased during the year ended 31 December 2022. The amount of finance costs not capitalised and being recorded directly as current year expenses in 2022 decreased by more than 20% as compared to 2021, but it remained as a significant expense item for the Group's results for the current year; partly offset by: for the year ended 31 December 2022, the Group is expected to record a fair value loss for its investment properties that is approximately 5 times to the fair value loss of RMB 213.8 million for the year ended 31 December 2021; and the Group's income tax expenses for the year ended 31 December 2022 is expected to increase significantly by 6 times as compared to 2021 due to higher tax provision made for land appreciation tax and corporate income tax associated with the higher-priced properties completed and delivered in the current year.