China Dredging Environment Protection Holdings Limited provided earnings guidance for the year ended December 31, 2018. For the year, the company expects that, based on the preliminary assessment of the latest unaudited financial information of the Group, the Group expects to record a net loss of approximately RMB 206 million for the year ended December 31, 2018 as compared to a net profit of approximately RMB 72 million for the year ended December 31, 2017. The expected net loss is mainly caused by the recognition of the impairment loss of approximately RMB 246 million in respect of the overdue trade receivables and contract assets by taking into consideration of the adoption of the Hong Kong Financial Reporting Standard 9 Financial Instruments in replacement of the Hong Kong Accounting Standard 39, as a result of which the Group's impairment model has changed from incurred loss model to expected credit losses model for the year ended 2018 whilst there was no such impairment loss for the year ended 31 December 2017.