The board of directors of Mingfa Group (International) Company Limited informed the shareholders of the Company and potential investors that, based on its preliminary review of the unaudited consolidated management accounts of the Group for the year ended 31 December 2022 (Reporting Period') and information currently available to the Board, the Group is expected to record a profit attributable to equity holders of the Company in the range of approximately RMB 30 million to RMB 60 million for the Reporting Period as compared to a profit attributable to equity holders of the Company of approximately RMB 1,882.7 million for the year ended 31 December 2021 (the Corresponding Period). The Board believes that the expected decrease in the profit attributable to equity holders of the Company for the Reporting Period was mainly attributable to (i) the decrease in revenue of approximately 35.6% as compared to the revenue for the Corresponding Period as a result of the decrease in gross floor area (GFA) delivered to the buyers and the decrease in average selling price (ASP) and such decrease in GFA was mainly due to less properties delivered in Taizhou, Jinzhai and Changsha in 2022; and (ii) the incurrence of net other losses of approximately RMB 241.5 million for the Reporting Period as compared to the net other gain of approximately RMB 314.1 million for the Corresponding Period mainly due to the exchange loss arisen from translating the offshore loan and payable nominated in USD or HKD to RMB.