Huajin International Holdings Limited provided preliminary unaudited consolidated earnings guidance for the year ended December 31, 2018. For the year, the board of directors of the company announced the shareholders and potential investors of the Company that, based on the preliminary review of the group's unaudited consolidated management accounts for the year ended 31 December 2018, the group is expected to record a significant decrease by approximately 90% in profit attributable to owners of the Company for the year ended 31 December 2018 as compared to a profit of approximately RMB 92.6 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, among others, the following factors the price of raw materials, namely hot-rolled steel coils, went up substantially since late March 2018, hitting the highest level in the past five years. In order to maintain business flow in view of the keen competition in the market and rising raw material cost to customers, the company reduced its average processing fee (being the difference between the selling price and the cost of direct materials) charged for products resulting in the drop of gross profit in the amount of approximately RMB 70.9 million during the year of 2018; and net realized loss on derivative financial instruments in amount of approximately RMB 27.3 million was recognized by the Group during the year of 2018 as compared to net realized gain and fair value gain on derivative financial instruments in amount of approximately RMB 9.3 million recognized during the year of 2017.