Zensun Enterprises Limited provided group earnings guidance for the year ended December 31, 2022. The Group is expected to record a net loss ranging from approximately RMB 2.5 billion to RMB 3.0 billion for the year ended December 31, 2022, as compared to the net profit of approximately RMB 0.4 billion for the year ended 31 December 2021. Based on the information currently available, the Board considers that such expected loss was primarily due to: (i) the decline in delivery and decrease in income during the year as the COVID-19 pandemic caused by delays in the construction progress; (ii) the year-on-year decline in sales due to the continuing downturn of the real estate industry; (iii) the impairment provision made for the property projects; (iv) decrease in the fair value of the financial assets at fair value through profit or loss; and (v) exchange losses on the debts denominated in USD under the impact of changes in the exchange rate between USD and RMB.