Based on the currently available information which includes, but without limitation to, the unaudited management accounts of Shougang Concord Century Holdings Limited for the six months ended 30 June 2018, it is expected that the Group will record an unaudited consolidated loss in the range of HKD 18,500,000 to HKD 26,500,000 for the six months ending 30 June 2018 as compared to an unaudited profit of HKD 24,372,000 for the six months ended 30 June 2017. The expected discernible loss was mainly due to during the latter half of first quarter and early part of second quarter in 2018, there was lower sales volume and turnover of steel cord segment attributable to the unexpected decrease in demand of some of major domestic customers and relatively high inventory level of the tyre industry in general. Therefore gross profit margin of steel cord segment has further eroded and continued to decline in the first half year of 2018; and recognition of foreign exchange loss of approximately HKD 6,600,000. The expected discernible loss has not included any potential provisions/impairment which has to be made subject to the review of the Board and the audit committee of the Company together with the discussion with the independent auditor of the Company.