Glory Health Industry Limited provided earnings guidance for six months ended June 30, 2022. Based on the preliminary assessment of the Group's unaudited management accounts as at June 30, 2022 and the information currently available to the Board, the Group expects to record a net loss ranging from approximately RMB 600 million to RMB 900 million, as compared to the net profit of approximately RMB 370 million for the corresponding period in 2021. The reasons for the expected loss are: as affected by the downturn in the real estate market, the gross profit of projects included in settlement decreased; as affected by the control measures adopted for the spread of the COVID-19 pandemic in China during the first half of 2022, the construction progress of various projects has been delayed, resulting in an increase in project costs, while the decrease in delivered area affected the profit carried over; the provision of impairment (mainly impairment in inventories and impairment in trade receivables) made an impact on gross profit; and fluctuations in exchange rate resulting in exchange losses.