Founder Holdings Limited provided earnings guidance for the year ended 31 December 2019. The board of directors of the Company informed the shareholders of the Company and prospective investors of the Company that, based on its preliminary assessment of the Group's unaudited consolidated management accounts for the year ended 31 December 2019 and information currently available to the Group, the Group is expected to record a loss attributable to owners of the Company of not less than approximately HKD 225 million for the year ended 31 December 2019, as compared with the profit attributable to owners of the Company of approximately HKD 87.3 million for the year ended 31 December 2018. The Board believes such change from profit to loss is mainly attributable to the due and default of the Entrusted Loan. The default of the Entrusted Loan will lead to impairment loss of approximately HKD 420 million and deferred tax of approximately HKD 105 million, resulting in net loss impact of approximately HKD 315 million.