China Dredging Environmental Protection Holdings Limited provided earnings guidance for the six months ended 30 June 2019. Based on the preliminary assessment of the latest unaudited financial information of the Group, the Group expects to record a net loss in the range of RMB 21.0 million to RMB 29.0 million for the six months ended 30 June 2019 as compared to a net profit of approximately RMB 21.8 million for the six months ended 30 June 2018. The change from profit to loss is mainly caused by the following factors: The initial investment costs for the expansion of the traditional dredging business to overseas markets are comparatively higher while the production capacity has not yet been unleashed, which led to a decline in revenue and gross profit margin of this business segment and further led to a fairly substantial drop in the overall gross profit; Certain environmental protection dredging projects were progressing slowly. Although the gross profit margin of the environmental protection dredging business increased, the declining rate in operating revenue was higher, leading to a drop in the gross profit of such business segment in general; and Both the gross profit margin and revenue of the other marine business dropped due to the intensive competition in the industry, resulting in a fairly substantial decline in the gross profit of this business segment. Based on the above factors, the Group's revenue decreased by approximately 23% as compared to the same period of the year 2018 to approximately RMB 270.4 million and the total gross profit also decreased by approximately 67% as compared to the same period of the year 2018 to approximately RMB 30.5 million. The Company is still in the process of finalising its interim results for the six months ended 30 June 2019.