The board of directors of Million Cities Holdings Limited informed the shareholders of the Company and potential investors that, based on the preliminary assessment of the latest consolidated management accounts of the Group for the year ended 31 December 2021 and the information currently available, as compared to a profit of approximately RMB 231.9 million recorded for the Group for the year ended 31 December 2020 the Group is expected that the profit for 2021 will decrease by approximately 15-25%. On the other hand, the profit attributable to equity shareholders for 2021 is expected to increase by approximately 45%-55%, as compared with a profit attributable to equity shareholders of approximately RMB 112.7 million for 2020. A decrease in profit for 2021 was mainly attributable to a substantial decrease in profit from operations for 2021, as the net profit margin of one of the Group's projects in Tianjin, namely Million Cities Tycoon Place Phase 3 and Phase 4, is lower than that of other projects of the Group in Huizhou recognised in FY2020.

On the other hand, the Group has recorded a profit from the share of profits less losses of associates as a result of certain projects of the Group's associates in Huizhou and Henan Provinces which were completed for delivery during 2021. Accordingly, it is expected that the profit attributable to the equity holders of the Company for 2021 will increase substantially, as compared with that for 2020.