Huarong International Financial Holdings Limited provided earnings guidance for the six months ended June 30, 2018. The group expects to record a material net loss for the Relevant Period as compared to a net profit attributable to the owners of the company of approximately HKD 584 million for the six months ended 30 June 2017. The expected net loss was mainly due to substantial provisions that are expected to be made against the Group's direct investments in debt instruments, receivables and loans and advance in connection with significant increases in credit risk of the underlying debt issuers, debtors and borrowers as at the end of the Relevant Period for which credit loss assessment are still being made, unrealised (non-cash) loss arising from the adverse fair value change of the financial assets at fair value through profit or loss, and impairment loss as a result of the decreases in market values of the collateralized securities as at the end of the Relevant Period provided by one of the Group's margin financing customers.