The board of directors of Yuzhou Group Holdings Company Limited informed the shareholders of the Company and potential investors of the Company that, based on a preliminary assessment of the unaudited consolidated management accounts of the Group for the year ended 31 December 2023 and other information currently available to the Board, it is expected that the Group will record a total revenue of approximately RMB 21,477 million for the Reporting Period, representing a decrease around 20% compared with that of approximately RMB 26,737 million recorded for the year ended 31 December 2022, which was mainly due to lower revenue from property sales as a result of fewer delivery of property with the context of the continuing downturn of the real estate industry in the PRC. In addition, it is expected that the Group will record a net loss attributable to the Shareholders of an amount ranging from approximately RMB 10,000 million to RMB 11,000 million for the year, compared to the net loss attributable to the Shareholders of approximately RMB 12,015 million recorded for 2022. Based on the relevant information currently available to the Company, the Board considers that the estimated decline in net profit of the Group was mainly attributable to 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; 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; due to the decline in the rate of capitalized interest during the Reporting Period, the financial costs recognized by the Group in profit or loss significantly increased accordingly; and due to the continuous depreciation of RMB against the USD, the Group incurred an exchange loss on offshore USD-denominated notes.