China Ever Grand Financial Leasing Group Co., Ltd. provided earnings guidance for the year ended December 31, 2017. Based on the preliminary unaudited consolidated management accounts of the group for the year ended 31 December 2017, the group is expected to record a net loss for the current year as compared to a net profit of approximately HKD 51.8 million for the year ended 31 December 2016. Such adverse change is mainly attributable to the significant decrease in gross profit amount contributed from the finance lease business roughly by half primarily due to an unfavorable financial environment in the PRC where the tight liquidity and rising interest rates resulting from the strict regulatory policies made the group difficult to obtain bank credits to finance the potential finance lease project and thus lowering the lease volume and overall profitability. The increasingly intensified competition in the finance lease industry as a result of increasing number of finance lease company in the PRC also aggravated the business performance. Recognition of a non-cash impairment loss on goodwill of not more than approximately HKD 50 million which arose when the finance lease business was acquired in January 2016. It is mainly triggered by the unfavorable change in the market conditions in 2017 which factored in the latest 4-year period financial budget in which the revenue and gross profit margin were adjusted downward as compared with the last year budget and thus a shortfall was recognized as impairment loss accordingly. Adverse change in the fair value of securities investments from an overall profit of HKD 38.0 million from the convertible bonds and the listed shares in the Corresponding year to a loss of approximately HKD 27 million from the listed shares in the Current Year and absence of an one-off gain on disposal of subsidiaries of HKD 20.5 million in the Corresponding Year.