The board of directors of Flat Glass Group Co., Ltd. announced that based on the preliminary assessment by the Board of the unaudited consolidated management accounts of the Group for the year ended 31 December 2017, the Group expects the net profit for the year ended 31 December 2017 will decrease by around 30.0% as compared to RMB 613.5 million for the year ended 31 December 2016. Such decrease was primarily due to a combination of the following reasons: a decrease in the average selling price of PV glass and a substantial increase in the price of certain major raw materials, including soda ash and fuel, for the year ended 31 December 2017 as compared to the year ended 31 December 2016, which in turn increased the cost of sales for the period; and for the year ended 31 December 2016, the Group recorded a substantial increase of net profit of 41.42% as compared to the year ended 31 December 2015, which was primarily caused by the particularly strong demand of the downstream of photovoltaic (PV) modules and decrease in the price of certain major raw materials, including electricity and natural gas, which the Group no longer benefited from for the year ended 31 December 2017. As the net profit for the year ended 31 December 2017 is expected to decrease by around 30.0%, the Board believes that it is a result of the efforts from the management to improve the financials of the Group which has led to the decrease in profit to narrow as a whole for the year ended 31 December 2017. Furthermore, with the average selling price of PV glass products increasing towards the end of 2017 and in January 2018, the Board remains positive of the business outlook of the Group in 2018.