China East Education Holdings Limited provided earnings guidance for the six months ended June 30, 2019. The company expects that Group would record an increase in net profit after tax from continuing operations of at least 40% as compared with that of approximately RMB 216 million for the six months ended June 30, 2018. The net profit after tax from continuing operations for the six months ended June 30, 2019 has also taken into account the effects of (i) the share based payment expenses of approximately RMB 75 million; (ii) the non-recurring listing expenses amounted to approximately RMB 20 million; and (iii) the adoption of Hong Kong Financial Reporting Standard 16 - Leases with effect from January 1, 2019 (which resulted in the amortisation of right-of-use assets and interests recognised on lease liabilities) and amounted to an adjustment of expenses of approximately RMB 20 million for the period while the net profit after tax from continuing operations for the six months ended June 30, 2018 did not have such expenses for the period. The Board considers that such increase was mainly attributable to an increase in the number of average students enrolled and an increase in the average tuition/service fee during the period which resulted in the increase in the revenue and the net profit after tax from continuing operations of the Group for the six months ended June 30, 2019.