Cheuk Nang (Holdings) Limited provided earnings guidance for the year ended 30 June 2018. The company expected to record a substantial increase in profit attributable to the owners of the company for the year ended 30 June 2018 as compared to that for the year ended 30 June 2017. Based on the preliminary financial information, the Group's revenue and gross profit for the year ended 30 June 2018 to be approximately HKD 68.4 million and HKD 44.6 million respectively decreased substantially as compared to those for the year ended 30 June 2017 of approximately HKD 1,682.8 million and HKD 1,250.4 million respectively; while the Group recorded substantial increase in change in fair value of the Group's investment properties for the year of approximately HKD 1,131.5 million, for the year ended 30 June 2017 approximately HKD 74.2 million. The expected increase in profit attributable to the owners of the company for the year ended 30 June 2018 is mainly due to reduction in income tax expenses (for the year ended 30 June 2018: approximately HKD 437.1 million, for the year ended 30 June 2017: approximately HKD 747.9 million) but offset by decrease in the sum of gross profit and change in fair value of the Group's investment properties (for the year ended 30 June 2018: approximately HKD 1,176.1 million, for the year ended 30 June 2017: HKD 1,324.6 million). The decrease in revenue and gross profit and the increase in the fair value of investment properties were the result of the classification of properties under development for sale in Shenzhen to investment properties for rental income.