China Huarong Asset Management Co., Ltd. provided earnings guidance for the year ended 31 December 2018. The board of directors of the Company announced that, based on the information currently available to the Group and a preliminary assessment by the Company on the unaudited consolidated management accounts of the Group for the year ended 31 December 2018, the Group is expected to record a 90%-95% decrease in the net profit attributable to the shareholders of the Company for the year ended 31 December 2018 as compared to the corresponding period in 2017. The current period's expected decrease in business performance was mainly due to: (1) a greater fall in valuation of some financial assets held by the Group, which was affected by the great fluctuations in capital market after the Group implemented the International Financial Reporting Standard 9- Financial Instruments in 2018; (2) a greater loss attributable to the shareholders of the Company incurred by the non-financial subsidiaries of the Group, which was affected by the Group's reduction in non-principal and uncompetitive businesses, market environment and credit risk exposure, etc; (3) a significant increase in the interest expenses of the Group in the current period as compared to the corresponding period in 2017, which was affected by the financing scale.