The board of directors of the Greenheart Group Limited announced that, based on the information currently available, the Group expects to record a loss for the year ended 31 December 2018 as compared to a profit for the year ended 31 December 2017. The turnaround from profit to loss was due to a decrease in revenue contributed by New Zealand division of the Group of approximately HKD 173.7 million, of which HKD 136.0 million was mainly due to the reduction of the harvesting volume in the Group's own plantation assets, and the decrease of the average selling prices. As disclosed in the Group's interim report 2018, the reduction of the harvesting volume was predominately caused by the temporary withdrawal of one harvesting crew during the first half of the Year. Although the Group was able to get back the harvesting crew afterwards, the harvesting volume could not increase enough to make up the shortfall; a significant decrease in profit margin of the New Zealand division caused by the decline of the average export price of New Zealand radiata pine on Free on Board basis during the second half of the Year, and as disclosed in the Company's 2018 interim report, the increase of average unit direct operating costs caused by higher fuel costs and increased contractors' rates for tougher harvest terrain, together with the increase in non-cash unit forest depletion cost as a result of the increase in the fair value of the plantation forest assets, as disclosed in the Group's 2017 annual report and 2018 interim report; a substantial decrease in non-cash fair value gain on plantation forest assets located in New Zealand by approximately HKD 39.9 million for the Year. The gain was calculated based on the valuation report at the end of the Year prepared by an independent valuer and the decrease in gain was primarily attributable to the lower level of increase in both near term and long term forecasted selling price of logs in 2018 as compared to that in 2017; and a one-off gain on disposal of certain idle vehicles in Suriname of HKD 5.1 million and reversal of impairment of prepaid lease payments of HKD 3.8 million were recorded in 2017 whereas contributions from these items were minimal in 2018.