Reach New Holdings Limited provided earnings guidance for the year ended December 31, 2018. The Group is expected to record a loss as compared to the net profit of the Group (excluding the listing expenses) of approximately RMB 4.5 million recorded for the year ended 31 December 2017. Such loss was mainly attributable to (i) an approximate 3.8% decrease in revenue principally due to the decrease in sales of both printing products and woven label which caused by the cost reduction measures taken by the Group's customers; (ii) an approximate 5.4% decline in gross profit margin primarily caused by the increment of production costs; and (iii) the increase on administrative expenses which mainly due to the increase in directors' fee and staff costs incurred after the listing of the Company.