China Digital Video Holdings Limited provided consolidated earnings guidance for the year ended December 31, 2018. For the year, the board of directors of the Company announced the shareholders of the Company and potential investors that, based on a preliminary review and analysis of the latest available unaudited consolidated management accounts of the Group, it is expected that the consolidated net loss for the year ended 31 December 2018 is likely to be significantly higher than the Group's consolidated net loss of approximately RMB 92.6 million for the year ended 31 December 2017. The expected loss for the Financial Year 2018 is primarily attributable to the following non-cash items i.e. the provision of impairment on goodwill in relation to the Group's acquisition of digital broadcasting business in 2013 is estimated to be approximately RMB 56 million for the Financial Year 2018. Such impairment loss is primarily attributable to the underperformance of the Group's digital broadcasting business; and based on the operating track record of the Group, current market condition and the outlook in the future, the provision for credit loss on trade and other receivables of approximately RMB 67 million was made for the Financial year 2018. The actual amount of impairment loss on goodwill and provision for credit loss are subject to final audit by the Company's auditors. The Board would like to emphasize that the impairment loss on goodwill and provision for credit loss are non-cash items and will not affect the Group's daily operations and cash flow.