China Ting Group Holdings Limited provided earnings guidance for the year ended December 31, 2018. Following a preliminary review of the information currently available to the Board, which includes, but without limitation to, the unaudited management accounts of the Group for the year ended 31 December 2018, the Board informed the shareholders of the Company and prospective investors of the Company that the net profit before tax of the Group for the year ended 31 December 2018 would decrease by approximately 70-80%, as compared with the net profit before tax of the Group of HKD 157.3 million for the year ended 31 December 2017, because of the following reasons: (1) the amount of gross profit of the Group for the year ended 31 December 2018 would decrease by approximately 15.3%, as compared with the amount of gross profit of the Group for the year ended 31 December 2017 of HKD 665.3 million. The decrease in the amount of gross profit was due to the keen price competition faced by the Group; (2) the increase in the amount of the provision for impairment losses for trade receivables by approximately 30% because of the commencement of bankruptcy or analogous proceedings by certain customers of the Group; (3) an one-off compensation from available-for-sale financial assets of approximately HKD 10 million received by the Group in 2017, which no such compensation has been received by the Group for the year ended 31 December 2018.