The board of directors of Suncity Group Holdings Limited informed that, based on the preliminary review of the unaudited consolidated management accounts of the Group for the six months ended 30 June 2020, the Group is expected to record a loss attributable to owners of the Company of approximately RMB108 million, representing a significant reduction of loss as compared to the loss attributable to owners of the Company of RMB 1,254 million for the six months ended 30 June 2019. Based on the relevant information currently available, the Board considers the significant reduction of loss attributable to owners of the Company for the six months ended 30 June 2020 was mainly attributable to the gain in respect of the change in fair value of derivative financial instruments of approximately RMB 596 million (for the six months ended 30 June 2019: loss in respect of the change in fair value of derivative financial instruments of approximately RMB 1,074 million), partially offset by (i) the increase in loss in respect of the change in fair value of investment properties; (ii) the increase in share of loss of a joint venture; and (iii) the increase in finance costs.