China Huarong Asset Management Co., Ltd. provided Group earnings guidance for the six months ended June 30, 2018. The Group is expected to record a prominent decrease in the net profit attributable to the shareholders of the Company for the six months ended 30 June 2018 as compared to the corresponding period in 2017. The Board considers that such decrease under the circumstances of deleveraging was mainly due to (1) a substantial increase in provisions as compared to the corresponding period in 2017 as a result of credit risk exposure of part of financial assets held by the Group of the current period; (2) a significant increase in interest expenses as compared to the corresponding period in 2017 result from a great increase of external financing by the Group of the current period; and (3) a decrease in valuations of part of financial assets held by the Group affected by the wide capital market fluctuations of the current period.