Peking University Resources (Holdings) Company Limited informed the shareholders of the Company and potential investors that based on the information currently available to the Board and the preliminary review of the unaudited consolidated management accounts of the Group for the year ended 31 December 2019, it is expected that the loss will be recorded of approximately RMB 1,600 million for the Year 2019, as compared to the profit of approximately RMB797 million recorded for the year ended 31 December 2018. The expected loss of the Group for Year 2019 was mainly due to the provision made for possible impairment loss incurred from the realizable net values of certain property development projects based on the assessment of the prevailing market conditions.