The board of directors of BBMG Corporation informed its shareholders and potential investors that, based on the Company's preliminary estimations and calculations, the Group is expected to record a net loss attributable to shareholders of the Company between approximately RMB 750,000,000 and RMB 950,000,000 for the six months ended 30 June 2024, representing a decrease in net profit attributable to shareholders of the Company between approximately 283% and 332% when compared with the same period of last year and a net loss attributable to shareholders of the Company after deducting non-recurring profit and loss of approximately RMB 2,050,000,000 to RMB 2,250,000,000, representing a year-on-year increase in net loss of 274% to 310%. The Board believes that the year-on-year decline in the Company's performance during the Reporting Period is mainly due to the overall weak effective demand for cement. The sales volume of cement and clinker was approximately 38.00 million tonnes (based on accounting records), representing a decrease of approximately 5.96 million tonnes or approximately 13.2% from approximately 43.96 million tonnes in the same period last year.

Although the Company has taken a number of measures to reduce costs and adjust selling prices upward, these were at the moment insufficient to make up for various adverse effects, resulting in a year-on-year expansion of operating losses during the Reporting Period. In the first half of the year 2024, real estate policies continued to be optimized and regulations in core cities were loosened. However, sales continued to bottom out and remained at a low level.

During the Reporting Period, the Company's property development business recorded a recognized gross floor area of approximately 396,000 square meters, representing a decrease of approximately 113,000 square meters or approximately 22.2% from approximately 509,000 square meters in the same period last year. The Group recorded net profit attributable to shareholders of the Company and the net loss attributable to shareholders of the Company after deducting non-recurring profit and loss for the six months ended 30 June 2023 of approximately RMB 410,060,000 and RMB 548,630,000 respectively, with basic earnings per share of RMB 0.0025.