The board of directors of South China Holdings Company Limited informed the shareholders of the Company and potential investors that, based on the preliminary review of the unaudited consolidated management accounts of the Group, the Group expects to report a significant increase in profit by approximately 300% for the year ended 31 December 2019 as compared with the audited results for the year ended 31 December 2018. According to the available information, the expected increase in profit is mainly attributable to the fair value gain on the investment portion of the project in Shenyang, China, that is under development during the year and being re-measured at fair value as at 31 December 2019 pursuant to the applicable accounting standards.