The board of directors of SRE Group Limited informed the shareholders of the Company (the "Shareholders") and potential investors that based on preliminary review of the unaudited consolidated management accounts of the Group, the Group is expected to record unaudited net loss and unaudited loss attributable to the shareholders of the Company for the year ended 31 December 2019 (the "Reporting Period"), as compared with the net profit and profit attributable to the shareholders of the Company of approximately RMB 99 million and RMB 114 million respectively for the year ended 31 December 2018. Such loss is mainly attributable to the decrease in revenue and gross profit from real estate development as a result of the decrease in areas delivered in the sales of the properties. Meanwhile, due to the downward pressures on the economy and the impact of the novel corona virus epidemic on property business, the Board provided large impairment losses for some properties and investments after careful consideration.