Yuzhou Group Holdings Company Limited provided consolidated earnings guidance for the six months ended 30 June 2023. The Group for the six months ended 30 June 2023 and other information currently available to the Board, it is expected that the Group will record a total revenue of approximately RMB 12,486 million for the Reporting Period, which is slightly increased compared with that of approximately RMB 12,393 million recorded for the six months ended 30 June 2022, which was mainly due to the Company's adherence to the policy objective of "guaranteeing completion and ensuring delivery" proposed by real estate market regulatory authorities during the Reporting Period. However, (1) due to the impacts of the unfavorable macro environment and the downturn in the real estate industry, the gross profit of projects delivered by the Group during the Reporting Period decreased; (2) being affected by the market environment, where there were indications of impairment on some real estate projects of the Company, the provision for impairment of inventories and other assets increased based on the principle of prudence and the fair value loss on investment properties; (3) due to the decrease in the portion of capitalised interest during the Reporting Period, the financial costs of the Group significantly increased; and (4) due to the continuous depreciation of RMB against the USD, the Group incurred an exchange loss on offshore USD-denominated notes.

It is expected that the Group will record a net loss attributable to the Shareholders of approximately RMB 6,000 million to RMB 7,000 million during the Reporting Period, compared to the net profit attributable to the Shareholders of approximately RMB 59.09 million for the same period in 2022.