The board (the "Board") of directors (the "Directors") of Kaisa Prosperity Holdings Limited announced that based on the preliminary assessment of the information currently available to the Company and the unaudited management accounts of the Group, it is expected that the Group will record a loss of not more than approximately RMB 98 million for the six months ended 30 June 2023 as compared to a profit of RMB56.2 million for the six months ended 30 June 2022. The Company considers that the decrease is mainly attributable to the continued weakness and uncertainty of the real estate industry in the Mainland resulting in (i) an initiative decline in the business scale of pre-delivery and consulting services by the Group; and (ii) an increase in the provision of impairment for trade receivables from related parties.