Chinese Estates Holdings Limited provided earnings guidance for the year ended December 31, 2019. The company expected that the group may record a decline in the revenue ranging from 31% to 41% and a decrease in the consolidated net profit attributable to owners of the company ranging from 17% to 27% for the year ended 31 December 2019, as compared with the revenue of HKD 844 million and the consolidated net profit attributable to owners of the company of HKD 1,015 million for the year ended 31 December 2018. Following are a number of reasons which led to the decline in the Revenue and the decrease in the Profit:- (1) No sale of trading properties during the Year. In 2018, the Group recorded HKD 274 million in the Revenue and the contributed attributable profit (including attributable profit from associates and an investee company) of HKD 183 million. (2) Net profit from investments and treasury products at fair value through profit or loss. The Group has in the ordinary and usual course of business conducted its securities investment activities for years. During the Year, based on the preliminary assessment, it is expected that the Group would record a net profit of approximately HKD 1.8 billion from the segment of investments and treasury products at fair value through profit or loss as compared with a net loss of HKD 711 million in 2018. Net profit (loss) from the segment of investments and treasury products at fair value through profit or loss includes realized gain (loss) on disposals; unrealized gain (loss) on changes in fair values; and net income from interest income, other net investment income and net finance costs. The result of a net profit was mainly attributable to, among others, the unrealized gain on fair value changes of bonds of approximately HKD 1.0 billion (2018: unrealized loss of HKD 1.3 billion) and realized gain on disposals of bonds of approximately HKD 184 million (2018: realized loss of HKD 20 million) for the Year. The unrealized fair value change is a non-cash item and will not affect the cash flow of the Group. (3) No dividend income from listed equity investments at fair value through other comprehensive income during the Year. In 2018, the Group recorded a net dividend income of HKD 1.1 billion(after transaction costs) from the shares of China Everglade Group held by the Group. (4) Loss on fair value changes on investment properties. The Group's investment properties were revalued as at 31 December 2019 and loss on fair value changes of approximately HKD 743 million (2018: gain of HKD 122 million) would be recorded for the Year as compared with the fair value as at 31 December 2018. The loss on fair value changes for the Year was mainly derived from the decrease in fair value of investment properties located in the United Kingdom. The fair value change is a non-cash item and will not affect the cash flow of the Group. (5) Impairment loss of goodwill. The Group recognized a full impairment loss of goodwill of approximately HKD 323 million (2018: nil) attributable to the cash-generating unit operated in the United Kingdom for the Year, which includes an investment property in the United Kingdom. Recognition of impairment loss is a non-cash item and will not affect the cash flow of the Group. In addition to the decline in the Revenue and the decrease in the Profit which constitute profit warning and inside information of this announcement, the Group may record an expense in the consolidated other comprehensive expenses (the "Other Comprehensive Expenses") for the Year. Reference is made to the Company's announcement dated 3 January 2020, it is expected that the Group would record an other comprehensive expense for the Year which represented unrealized loss on fair value change of the Everglade Shares of approximately HKD 1.6 billion (2018: HKD 3.1 billion). The unrealized fair value change is a non-cash item and will not affect the cash flow of the Group.