China Oriental Group Company Limited provided unaudited consolidated earnings guidance for the six months ended June 30, 2018. The board of directors of the company announced that the shareholders of the company and potential investors that, based on a preliminary review of the Group's unaudited consolidated management accounts for the five months ended 31 May 2018, the sales performance of the Group for June 2018 and the information currently available to the Board, the Group is expected to record a very significant increase in net profit for the six months ended 30 June 2018, as compared with the corresponding period in 2017. Based on the information available to date, the expected increase in net profit of the Group for the six months ended 30 June 2018 is mainly attributable to the continuous improvement of the business environment of China's steel industry, the Group's proactive conforming with the Chinese government policies, continuously pursuing efficiency enhancement and cost control, etc. which lead to improvement in business performance, among other things, (i) increase in average selling price of the steel products; and (ii) effective cost control implemented by the Group and moderate increase in cost of raw materials during the period. As a result, a notable increase in gross profit margin.