Huajin International Holdings Limited provided group earnings guidance for the six months ended June 30, 2018. For the six months, based on the preliminary review of the Group's unaudited consolidated management accounts, the group is expected to record a profit attributable to owners of the Company of approximately RMB 12 million as compared to a profit of approximately RMB 54.5 million for the corresponding period in 2017. Based on the relevant information currently available, the Board considers that such decrease in profit was primarily attributable to the price of raw materials, namely hot-rolled steel coils, went up substantially during the first half of 2018, hitting the highest level in the past five years. Some of customers adopted a wait and see approach in reordering their stock which resulted in a decrease in sales volume as compared to the corresponding period of 2017. In addition, the company reduced average processing fee charged for products in order to maintain business flow in view of the keen competition in the market and rising raw material cost to customers; during the first half of 2018, finance costs increased by approximately RMB 5.8 million when compared with the corresponding period in 2017.