The board of directors of Peking University Resources (Holdings) Company Limited hereby 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 March 2024 (the "Period"), it is expected that the Group will record a loss of between approximately RMB 700 million and RMB 850 million for the Period, as compared to the profit of approximately RMB 1,018.9 million recorded for the year ended 31 March 2023. The expected loss of the Group for the Period was mainly due to (i) the decrease in gross profit arising from the decline in areas delivered of property development projects; (ii) the loss on resumption of lands of the Group by government authorities without compensation as disclosed in the announcement of the Company dated 25 September 2023; (iii) the provision for expected guarantee liabilities and litigation resulting from guarantees provided by the Group to subsidiaries of Hong Kong Huzi Limited which had been disposed of by the Group on 25 March 2022 with the guarantees continuing to be in effect, as well as the related litigations; (iv) impairment of properties under development for sale due to the declining property market conditions; (v) impairment of financial assets including other receivables and other assets based on the expected recovery of such by the Group; and (vi) the gain arising from the completion of disposal of subsidiaries in May 2023, which partly offsets the effects of items (i) to (v).