Renhe Commercial Holdings Company Limited expects to record a loss of not less than RMB300 million for the year ended 31 December 2018 which represents a substantial increase in loss as compared to the loss recorded for the year ended 31 December 2017. The expected increase in loss is primarily attributable to a loss from disposal of various subsidiaries in December 2018 which were solely used for holding two aircrafts and related licences. The Disposal could save significant expenses incurred from the maintenance and usage of the aircrafts, the Board believes that the Disposal only caused an one-off impact on earnings of the Group for the year ended 31 December 2018 but is expected to be beneficial to the Group in the long run.