Zall Smart Commerce Group Ltd. provided earnings guidance for year ended 31 December 2019. It is expected that the Group may record an increase of approximately 25% to 40% in its revenue and a significant decrease of more than 90% in its profit for the year ended 31 December 2019, as compared to those for the year ended 31 December 2018. Based on information currently available to the Board, the Board considers that the increase in revenue was primarily attributable to the increase in revenue from the supply chain management business, trading and related value-added services of the Group (the "Supply Chain Management and Trading Business") (which covers agricultural products, chemicals, iron and steel and non-ferrous metal, etc.) for the year ended 31 December 2019. The Board considers that the Supply Chain Management and Trading Business is at development stage and has a relatively low profit margin as compared to the other business segments of the Group. Therefore, the revenue growth of the Supply Chain Management and Trading Business will not have a significant impact on the Group's profit for the year ended 31 December 2019. The Board also considers that the significant decrease in profit was mainly due to (i) decrease in gross profit for the year ended 31 December 2019 as a result of the change of main business revenue segments of the Group; (ii) recognition of the net unrealized loss of approximately RMB 875 million on listed equity securities held by the Group for the year ended 31 December 2019; (iii) recognition of the impairment loss on assets like goodwill, intangible assets, financial instruments and trade receivables for the year ended 31 December 2019; and (iv) decrease in the net valuation gain on investment properties for the year ended 31 December 2019.