The board of directors of Suncity Group Holdings Limited announced that, based on a preliminary review of the group's unaudited consolidated management accounts for the year ended December 31, 2017, the group is expected to record profit attributable to owners of the company for the year ended December 31, 2017 as compared to loss attributable to owners of the company in the corresponding period of 2016. The Board considered that the profit derived during the year was mainly attributable to the reversal of provision for litigations of approximately RMB 289 million as a result of the correction of prior year's errors, among others, in respect of provisions for litigations and reversal of impairment loss recognized in respect of deposits for non-current assets of RMB 438 million.