Shinsun Holdings (Group) Co., Ltd. provided unaudited earnings guidance for the six months ended June 30, 2022. For the period, the company expects net loss for the Period of approximately RMB 500 million to RMB 700 million, as compared to a net profit of approximately RMB973.1 million for the six months ended 30 June 2021. The Board believes that the turnaround from net profit to net loss was primarily because (i) as affected by the systemic risk of the real estate sector since the second half of 2021, the Group sold those projects in slow destocking at a discount in order to improve its liquidity, resulting in a decrease in the overall gross profit margin for the same period in 2022; and (ii) as affected by the COVID-19 pandemic and the market downturn with the slowdown in construction progress, its booked GFA in the first half of 2022 decreased substantially as compared to that for the first half of 2021.

In addition, due to the repeated impact of the COVID-19 pandemic, the market competition has intensified which resulted in significant impact on the Group's overall operating income and profit level. Looking ahead, the Group will maintain its focus on the growth of its various business segments for the second half of 2022 and the Board remains optimistic that the Group will be able to restore its profit level as soon as possible.