MILLION CITIES (02892) issued a profit warning, expecting the annual net loss after tax to narrow to 1.43 billion to 2.43 billion, compared to the same period last year.

MILLION CITIES (02892) announced that for the fiscal year 2024, the group expects its post-tax loss to be between RMB 143 million to RMB 243 million (fiscal year 2023: RMB 607 million) and the loss attributable to equity shareholders of the company to be between RMB 109 million to RMB 209 million (fiscal year 2013: RMB 482 million). The board of directors hereby emphasizes that the revenue recognized for the fiscal year 2024 mainly comes from the sale of inventory, including Wancheng Mingzuo Phase III and Crown Villa shops in Huizhou. These properties were not newly completed or delivered in the fiscal year 2024. In contrast, the property sales for the fiscal year 2023 mainly came from properties that were newly completed and delivered at that time, such as Wancheng Mingzuo Phase III in Huizhou. Therefore, the sales volume for the fiscal year 2024 has decreased significantly. This has resulted in the group's sales performance for the fiscal year 2024 being inferior to that of the fiscal year 2023, leading to a significant decrease of approximately 80% to 90% in revenue for the fiscal year 2024. Despite the significant decrease in revenue for the fiscal year 2024, the recognition of impairment losses of other receivables from affiliated companies in the fiscal year 2024, and the provision for accrued interest on affiliated companies in the fiscal year 2024, the group expects the post-tax loss and the loss attributable to equity shareholders of the company for the fiscal year 2024 to decrease compared to the fiscal year 2023, as the provision for property impairment of subsidiaries and affiliated companies is expected to decrease significantly compared to the fiscal year 2023.