China Evergrande Group provided earnings guidance for the six months ended 30 June 2020. The board of directors wishes to inform the shareholders of the Company and potential investors that, based on the information currently available to the management, the Group expects that there will be a decrease in the net profit from the core business of the Group and the net profit for the six months ended 30 June 2020 as compared with the same period last year. Of which, the net profit from the core business is expected to be approximately RMB 19.3 billion, a decrease of approximately 37% from that of the same period last year, and the net profit is expected to be approximately RMB 14.7 billion, a decrease of approximately 46% from that of the same period last year. The decrease in profit for the first half of 2020 is mainly attributable to the effect of the COVID-19 pandemic outbreak and the Group's national sales promotion activities that provided discount to selling prices, the increase in marketing expenses, the foreign exchange losses caused by the fluctuation in foreign exchange rates during the period, and the investment in new energy vehicles by a subsidiary which led to consolidated statement losses.