China Rundong Auto Group Limited provided group earnings guidance for the year ended 31 December 2018. The board of directors of the company informed the shareholders of the company (the Shareholders") and potential investors that, based on the information currently available to the Board, the Group is expected to record a significant decline in its profit for the year ended 31 December 2018 as compared to the corresponding period of 2017. Such decrease was primarily attributable to the following factors: The Group acquired a number of new entities as detailed in the 2017 annual report of the Company. Upon the completion of these acquisitions, the acquired entities have been undergoing post acquisition integration. The aftermath synergies and combined results were yet to be crystalised for the period ended 31 December 2018 as anticipated, which was due to, among others, the realignment in the overall organisation structure, transitional changes of key management and staff relocation. In addition, the increase in total financing amount arising from the acquired entities also contributed to the increase in financial costs; In 2018, China's passenger vehicle market experienced negative growth for the first time in 28 years which was due to the combined effects of factors such as Sino-US trade friction, deleveraging and the weak purchasing power of consumers in areas where the Company is operating, the sales volume in China's passenger vehicle market weakened in the second half of 2018. In 2018, the sales volume of passenger vehicles of Chinese brands decreased by 7.99% year-on-year according to the statistics from China Association of Automobile Manufactures. As a result, the Group's overall revenue decreased during the year under the combined effect of the above factors; and During the year ended 31 December 2018, the Group conducted annual impairment tests on various assets in accordance with the Group accounting policies and the applicable accounting standards. As mentioned in the preceding paragraphs, in view of the overall declining growth in the automobile industry, and the Group's post acquisition integration is yet to be crystalised as per the Group expectation, the Group assessed and made provision for impairment at the end of the reporting period.