Q Technology (Group) Company Limited provided consolidated earnings guidance for the year ended 31 December 2018. For the period, it is expected that the consolidated profit attributable to the Shareholders before tax for the year ended 31 December 2018 may decrease by approximately 95% as compared with that of the corresponding period of the previous year. The Board believes that the expected decrease in profit is primarily attributable to the following factors: 1. Although the sales volume of camera module products has recorded significant increase in the year of 2018, however, the upgrading of the product mix optimization of camera module products takes time, the proportion of low value-added camera modules with low pixels has increased and the average selling price of camera module products has decreased, which resulted in the increase in the proportion of depreciation and labour costs, hence affected the overall gross profit margin of camera module products; 2. The selling price of coating fingerprint recognition modules has dropped obviously, whilst the proportion of optical under-glass fingerprint recognition modules which commenced bulk shipment in the second half of 2018 has yet to be improved, which affected the overall gross profit margin of fingerprint recognition module products; 3. The central parity rate of RMB against USD has depreciated more than 5% from 6.5342 at the end of 2017 to 6.8632 at the end of 2018, which further increased the costs of materials and bank borrowings denominated in USD and led to an exchange loss recorded by the Group; and 4. According to the announcement made by Newmax Technology Co. Ltd., an associated company of the Company, it still recorded a cumulative loss as of the end of the third quarter of 2018.