China Child Care Corporation Limited announced that, based on the unaudited management accounts, the management of the Company estimated that the Company experienced operational loss for the year ended 31 December 2018. The Company estimated that net loss after tax of the Group for the year ended 31 December 2018 was approximately RMB 400 million to RMB 440 million, as compared to a net loss after tax of the Group of approximately RMB 163 million recorded by the Group for the year ended 31 December 2017. The additional loss was primarily due to (i) the respective one-off gain on disposal of a subsidiary, (Fujian Herun) recorded by the Group in 2017; (ii) the impairment loss on property, plant and equipment, investment properties and the properties for development; (iii) the impairment loss on goodwill; (iv) continue sale and production difficulties of personal care products; and (v) the additional recalling fees caused by labelling issue of personal care products. In additional, the financial assets at fair value through other comprehensive income recorded a realised loss and unrealised loss of approximately RMB 3.5 million and RMB 74.9 million respectively.