Xinji Shaxi Group Co. Ltd. provided earnings guidance for the year 2021. For the year, the company expects that the net loss attributable to the Shareholders will be not less than RMB200.0 million but not more than RMB230.0 million as compared to the net profit attributable to the Shareholders of approximately RMB33.0 million in the corresponding year in 2020.

The Board considers that the above expected loss is primarily attributable to the decrease in the fair value gains on investment properties held by the Group, mainly as a result of the adjustment made in the valuation of the two shopping malls in Shenyang, the PRC due to the overall decrease in demand in the market, which was caused by the continuous impact of pandemic in various regions on the market due to COVID variant Omicron as well as the effect of tightening policies on properties in the second half of 2021.