The board of directors of Shandong Xinhua Pharmaceutical Company Limited announced that based on the Board's preliminary review of the unaudited consolidated management accounts of the Group for the year ended 31 December 2017 and the business performance of the Group, the Group is expected to record an increase in the net profit attributable to the Shareholders for the period from 1 January 2017 to 31 December 2017, as compared to the corresponding period in 2016. The company expects net profits attributable to the equity holders of the company of approximately RMB 184,000,000 to RMB 244,000,000, an increase of approximately 50%-100% as compared with the corresponding period last year; and basic earnings per share of approximately from RMB 0.38 to RMB 0.51.