China Geothermal Industry Development Group Limited announced consolidated earnings guidance for the year ended December 31, 2018. For the period, the Group is expected to record a substantial loss for the Year as compared to a profit for the last corresponding period in 2017. Such loss was mainly attributable to the decrease in revenue and gross profit margin for the Year as well as impairment loss of goodwill and accounts receivables. The reasons for the decrease in revenue and gross profit margin was mainly attributable to: (i) the fierce market competition, a number of contracts originally under negotiations could not be realized or being postponed; (ii) some of the Company's contracted projects were deferred due to the delays in the construction progress of subject properties; (iii) the investment in the demonstration projects for the development of new market was too large, and these low-margin demonstration projects have a greater impact on the overall gross profit margin.