Universal Health International Group Holding Limited provided consolidated earnings guidance for the eighteen months ended 30 June 2018. Based on the preliminary review of the unaudited consolidated management accounts of the Group and the current available information to the Board, the Group is expected to record a loss for the eighteen months ended 30 June 2018, and the loss for the Period is expected to exceed the loss for the twelve months ended 31 December 2017 and the year ended 31 December 2016. The expected loss recorded for the Period was mainly due to the following factors: the market remains at a very low point as a result of the continuous downturn of regional real economy with the Northeastern region in the People's Republic of China (the "PRC") experiencing a transition of its second revitalization and the competition has intensified; meanwhile, some of the branches were closed in the Period due to structural adjustment, resulting in a decrease in overall sales of the Group. upstream suppliers were striking for the Certification of the Good Manufacture Practice of Medical Products and hence devoted in upgrading their supplies, leading to an increase in the cost of purchase; meanwhile, during the Period, the Group has applied various promotion initiatives and organized more member events and different promotional campaigns with discounts offered to consumers in order to ease the significant decrease in sales and to maintain relative competitiveness, which resulted in a decrease in the gross margin of the Group for the Period. the Group has made an analysis on the impact of the macro and industrial economic environment and performed an impairment assessment on goodwill. Basing on the signs of impairment, the Group has performed an impairment assessment on goodwill and non-current assets. The Group is expected to make an impairment provision for goodwill and non-current assets. Although the Group is expected to record a loss for the Period, the Board is of the view that the overall financial position of the Group remains healthy.