Beijing Capital Grand Limited provided consolidated earnings guidance for the six months ended 30 June 2022. For the period, the Group is expected to record a net loss attributable to owners of the Company of not more than approximately RMB 116.2 million, representing an increase as compared to the net loss attributable to owners of the Company of approximately RMB 19.8 million for the six months ended 30 June 2021, which are mainly attributable to: (i) the fact that in the first half of 2022, especially since March, a number of stores of outlets operated by the Group in Beijing, Kunshan, Hangzhou, Nanchang, Zhengzhou, Jinan, Xi'an and Qingdao were put on lockdown or closed, and, in particular, the operations of the Beijing Outlets was suspended twice, which had a significant impact on the sales of the Group's Outlets in the first half of the year, and that the income available from the sale of properties also decreased in the first half of this year due to the unfavourable market conditions and the outbreak of the Covid-19 pandemic, which resulted in a decrease of approximately 19% in the aggregate revenue from the Group's rental income from investment properties, income from the sale of properties and income from the sale of goods as compared to the corresponding period of the previous year; (ii) a decrease of approximately 54% in the aggregate from the fair value gain from the Group's investment properties and other net income as compared to the same period of the previous year as the Group has been cautious in valuing its investment properties in light of the current environment. In addition, whilst ensuring the safety and measures on pandemic control, the Group strengthened the level of refined management, reduced expenses and increased efficiency, which resulted in reduction in cost of sales, selling and marketing expenses and administrative expenses of approximately 18% in aggregate as compared to the corresponding period.

Approaching June, with the gradual easing of the Covid-19 pandemic outbreak nationwide, the customer flow and sales of the Group's Outlets started to rebound.