The board of directors of Jolimark Holdings Limited informed the shareholders of the company and potential investors that based on the preliminary review of the latest unaudited consolidated management accounts of the Group for the year ended 31 December 2018, the Group is expected to record a loss of approximately between RMB 18 million and RMB 25 million for the year ended 31 December 2018, as compared with a profit of approximately RMB 13.5 million last year. The loss was primarily attributable to a decrease in both turnover and gross profit margin for the year due to the continuous market downturn, with an increase in promotion fees and development expenses for the new business and new products, loss arising from a change in exchange rate of the Renminbi and provision for investment losses.