Sunny Optical Technology (Group) Company Limited provided earnings guidance for the year ended 31 December 2018. The Group is expected to record for Fiscal Year 2018 a profit attributable to shareholders of the Company of approximately RMB 2,470.0 million to RMB 2,550.0 million, which represents a decrease by approximately 12% to 15% compared to that for the year ended 31 December 2017, being approximately RMB 2,901.6 million. The Board would like to emphasise that the finalised audited consolidated results of the Group for Fiscal Year 2018 may differ from the figures and information provided in this announcement. The Company will keep the shareholders and potential investors of the Company informed if necessary. Based on the information available to the Company immediately preceding the publication of this announcement, the Board considers that such expected decrease was primarily attributable to:- the depreciation of Renminbi in Fiscal Year 2018 which caused a net foreign exchange loss amounting to approximately RMB 380.0 million, in which an unrealised foreign exchange loss amounting to approximately RMB 280.0 million was caused by the USD 600.0 million bonds issued by the Company on 23 January 2018, which was a non-cash item; and the expected decrease in the gross profit margin of the handset camera modules business in Fiscal Year 2018 compared to that of Fiscal Year 2017 leading to the expected decrease in gross profit, which was attributable to:- the utilisation rate of the new factory which remained in the course of improvement in Fiscal Year 2018; the increased material costs due to the depreciation of Renminbi in Fiscal Year 2018; and the handset camera modules business which was in the process of the production line optimisation and the automation level improvement, which hindered the production efficiency and led to an increase in production costs.