Redsun Properties Group Limited provided consolidated earnings guidance for the six months ended 30 June 2022. For the period, the Group is expected to record net loss during the Period in the range of approximately RMB 350 million to RMB 450 million (the corresponding period in 2021: net profit of RMB 990 million). The net loss of the Period was mainly attributable to the facts that (1) the overall market size of the real estate industry declined and the gross profit of the projects which the Company closed for settlement during the Period was relatively low; (2) as the COVID-19 pandemic continues, the selling prices of the development projects of the Group fell short of expectation.

Both the occupancy rate and rental income of investment properties have decreased. During the Period, the fair value assessment of non-recurring profit or loss is estimated to be impaired. The impairment loss of assets arising from the provision for decline in value of inventories based on the principle of prudence is expected to increase; and (3) there has incurred significant exchange loss in respect of the USD-denominated debts of the Group due to the depreciation of RMB against USD.