The board (the ``Board'') of directors (the ``Directors'') of the Million Cities Holdings Limited announced the shareholders (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 six months ended 30 June 2023 (``2023 Interim Period'') and the information currently available, as compared to a profit after tax of approximately
RMB 33.1 million recorded for the Group for the six months ended 30 June 2022 (the ``2022 Interim Period''), the Group expects that the profit after tax for the 2023 Interim Period will decrease by approximately 60%-­70%. Moreover, the profit attributable to equity shareholders for the 2023 Interim Period is expected to decrease by approximately 90%-­100%, as compared with a profit attributable to equity shareholders of approximately RMB 39.8 million for the 2022 Interim Period. During the 2023 Interim Period, the Group expects to record a significant increase in the revenue from the sale of properties by approximately 250%­-320%, which was mainly attributable to the sale of Million Cities Legend Phase 3 in Huizhou, resulting in an expected increase in the profit from operations for the 2023 Interim Period, as compared to that of the 2022 Interim Period which was mainly attributable to the sale of Million Cities Tycoon Place Phase 3 in Tianjin that generated lower gross profit margin.