The board of directors of Guangdong Adway Construction (Group) Holdings Company Limited announced that, based on the preliminary review of the unaudited consolidated management accounts of the Group for the six months ended 30 June 2022 and other information currently available to the Board, the Group expects to record a loss attributable to equity holders of the Company of not less than RMB 91 million for the six months ended 30 June 2022 as compared to a profit attributable to equity holders of the Company of approximately RMB 4.1 million for the corresponding period in 2021. The Loss was mainly due to (i) the systemic impact of the COVID-19 pandemic and the state's regulation on the real estate industry, which affected the liquidity of customers' funds in the industry, and increased uncertainty in the return of payment from some of the Company's customers. After a prudent assessment by the management of the Company, the Company has made provision for impairment losses on the accounts receivable of customers with recoverability risks; and (ii) the reduction in the newly signed orders and construction work resulted in a decrease in revenue of more than 50% for the first half of 2022 as compared to the corresponding period in 2021.