Guangnan (Holdings) Limited informed the shareholders of the Company and potential investors that, based on the Company's preliminary review of the management accounts of the Group for the six months ended 30 June 2019, the consolidated profit attributable to shareholders of the Company for the six months ended 30 June 2019 is expected to be decreased by approximately 55% as compared to that for the corresponding period in 2018, primarily attributable to the net effect of (i) the value of investment properties held by the Group remained stable such that no valuation gains on investment properties were recorded for the current period as compared to valuation gains of HKD 61,224,000 recorded in the corresponding period last year; (ii) the decreased government grants income of an associate, Yellow Dragon Food Industry Co. Ltd., leading to an increase in loss recorded by this associate in the current period as compared to that for the corresponding period last year; and (iii) the increase in selling price and gross profit per unit of tinplate products, despite of the decrease in the sales volume of tinplate products during the current period as compared to that for the corresponding period last year, resulting in turning from a loss into profit for tinplating business.