Starlight Culture Entertainment Group Limited provided earnings guidance for the full year ended December 31, 2018. The Group is expected to record a significant decrease in loss of around HKD 210 million for the year ended 31 December 2018 as compared to the loss for the year ended 31 December 2017. The Board considers that such decrease in loss was mainly attributable to the followings: the gain on change in fair value of derivative financial liabilities of approximately HKD 36 million recognized during the Year of 2018 as compared to a loss of approximately HKD 30 million recognized in the Year of 2017 in relation to the convertible bonds issued by the Company; the decrease in impairment losses and increase in reversal of impairment losses of approximately HKD 68 million; the overall decrease in operating expenses, administrative expenses and finance costs of approximately HKD 44 million; and the gross profit of approximately HKD 29 million recognized during the Year of 2018 as compared to gross loss of approximately HKD 3 million recognized in the Year of 2017.