Dear Shareholders,

On behalf of the board of directors (the “Board”), I am pleased to present you the operating results of the Company for the year ended 31 December 2022.

As of 31 December 2022, according to the Hong Kong Financial Reporting Standards (“HKFRS”), during the Reporting Period, the Company recorded an operating revenue of RMB12,988,940,000 representing a year-on-year decrease of 41.45%. Loss before tax amounted to RMB803,113,000, representing a year-onyear decrease of 150.49%. Loss attributable to Ordinary Shareholders amounted to RMB1,471,352,000, representing a year-on-year decrease of RMB1,678,726,000. In particular, the after-tax core operating results of the principal activities of the Company (excluding losses arising from the changes in fair value) recorded a loss of RMB1,332,714,000, representing a year-on-year decrease of 532.63%. Loss per share was RMB0.4370.

Looking back on 2022, in the face of complex environment both domestically and internationally, the Company assessed the situation and overcame difficulties, seriously monitored and evaluated the changes in the market conditions, objectively assessed the current status of its business, effectively prevented risks and maintained the stable operation of various business segments. For the real estate development business, the Company quickly adapted to policy and market changes, strengthened the supervision and control over the entire process, rationalized the allocation of financial resources, strived to curb costs and expenses in an effort to consolidate the risk resistance of its real estate development business. In terms of convention and exhibition (including hotels) and commercial properties business, the Company achieved a breakthrough in expanding upstream business of convention and exhibition, continued to boost the scale of its convention and exhibition venue management output business, and further enhanced the professional operation of commercial properties, resulting in a steady progress in the effectiveness of the overall operation of convention and exhibition (including hotels) and commercial properties.

Looking forward to 2023, the Company will continue to adhere to the operation model of “Convention and Exhibition + Property” and, on the basis of giving full play to the comparative advantages of various business types, build a new pattern of mutual support, complementary advantages and synergic development of each segment to fuel the Company’s high-quality development. In terms of real estate development business, the company needs to conduct an in-depth study, evaluate and capitalize on the development trend of the industry, strengthen the overall planning on land reserve, product development and operational management and control, make a long-term plan for steady development, and build a real estate brand with North Star characteristics. In terms of convention and exhibition (including hotels) and commercial properties business, the Company needs to promote digital empowerment and achieve high-quality development. On the one hand, the Capital Convention Group is the platform to actively promote the layout and expansion of the whole industrial chain of the convention and exhibition industry, expand and strengthen the upstream business of convention and exhibition, and develop a first-class international convention and exhibition brand enterprise. On the other hand, with Beijing North Star Commercial Management Co., Ltd. as the platform, we will accelerate the quality and efficiency enhancement of our existing business, continuously improve our professional and market-oriented operation standards, and strive to build a commercial property management brand with its competitiveness in the industry.

I firmly believe that, all the staff members of North Star will, with strong sense of professionalism and high sense of responsibility, strive for building a first-class international convention and exhibition brand enterprise and a unique composite real estate brand enterprise, without disappointing investors who bestow trust on us.

Finally, on behalf of the Board, I would like to express our most sincere gratitude to all shareholders who have been supporting the development of the Company, and also to all the members of the Board, the supervisory committee and the management of the Company for their due diligence, and I would like to extend our heartfelt thanks to all the staff members of the Company for all the hard work they have done.

By Order of the Board

Li Wei-Dong
Chairman