Zhongliang Holdings Group Company Limited provided consolidated earnings guidance for the year ended 31 December 2022. For the year, the Group may record a profit after taxation but before impairment losses and fair value losses of approximately RMB 700 million, representing a decrease by approximately 88% compared to the same recorded for the year ended 31 December 2021. Depending on the results of the impairment assessment on various assets of the Group and the valuation of the Group's investment properties, the Group may record a loss attributable to owners of between RMB 500 million and RMB 1.8 billion for the Year 2022, compared to a profit attributable to owners of approximately RMB 2.7 billion in Year 2021.

Due to the impacts of the unfavourable macro and real estate market environment in China, the expected loss attributable to owners of the Company during the Year 2022 is mainly attributable to (i) the decrease in the area of properties delivered resulting in the decrease in revenue recognised from sale of properties; (ii) the decrease in gross profit margin due to weak real estate market; (iii) losses from effect of foreign exchange rates; and (iv) increase in impairment on property projects and other assets; and (v) fair value losses on investment properties.