China Oceanwide Holdings Limited provided earning guidance for the year ended 31 December 2021. For the period, the Company based on the information then available that the Group's consolidated loss attributable to shareholders of the Company for the year ended 31 December 2021 (the "Year") was expected to increase significantly compared to approximately HKD 0.927 billion in the corresponding period for the previous year. The Board wishes to inform the Shareholders and potential investors of the Company that based on the preliminary assessment of the Group's unaudited consolidated management accounts for the Year, it is expected that the Group will record a net loss attributable to the Shareholders of approximately HKD 4.6 billion to HKD 5.6 billion for the Year, as compared to that of approximately HKD 0.927 billion for the year ended 31 December 2020.

The significant increase in net loss attributable to the Shareholders during the Year were mainly due to (i) the impairment provisions for various overseas projects of the Group; (ii) the relevant interests and expenses not having been capitalised as the construction work of the Group's real estate development project in the United States of America (the "U.S.") has not resumed; (iii) the increase in penalty interest and loan extension fees; and (iv) the increase in provisions for litigation related expenses in relation to the U.S. real estate development projects of the Group.