The board of directors of SRE Group Limited informed the shareholders of the Company and potential investors that based on preliminary review of the unaudited consolidated management accounts of the Group, it is expected that the Group's unaudited net loss and loss attributable to the shareholders of the Company will decrease significantly for the year ended 31 December 2020, as compared to the net loss of RMB 2,281 million and loss attributable to the shareholders of the Company of RMB 2,257 million for the year ended 31 December 2019. The unaudited net loss recorded for the Reporting Year is expected to be in the range of RMB 850 million to RMB 1,000 million. The loss was primarily attributable to (1) a decrease in revenue and gross profit generated from real estate development as a result of a reduction in the delivered area of properties sold by the Group during the Reporting Year; (2) unrealized revaluation loss recorded on investment properties of the Group due to the COVID-19 epidemic and economic slowdown; and (3) certain amount of impairment loss provided for individual investments after the Group carefully evaluated investment in real estate under different market conditions and it is expected that the impairment loss will fall within the range from RMB 700 million to RMB 900 million.