The board of directors of Zensun Enterprises Limited informed the shareholders of the Company and potential investors that, based on the latest information currently available to the Board, the Company is expecting to record a decrease in consolidated net profit in the range of approximately 45% to 55% for the year ended 31 December 2021 as compared with the consolidated net profit of approximately RMB 778.4 million for the year ended 31 December 2020. The Board believes that such decrease in consolidated net profit of the Group was mainly attributable to the recognition of certain lower profit margin property projects during the Year, which included (i) property projects which are designated as policy-related housing of which the selling prices are strictly controlled by the government; (ii) property projects which had a higher unexpected construction cost due to the outbreak of COVID-19 pandemic which prolonged development progress and resulted in a lower profit margin at the time of recognition upon delivery during the Year; and (iii) property projects with suppressed selling prices under the impact of the general downturn in the property market as affected by national regulatory control measures and policies restricting the purchase of properties and the COVID-19 pandemic.