The board of directors of Modern Dental Group Limited announced that based on the preliminary assessment of the latest available unaudited consolidated management accounts of the Group (the Management Accounts) for the year ended 31 December 2018 (FY 2018), which have not been audited or reviewed by the auditor and/or the audit committee of the Group, the Group expects its profit attributable to the shareholders for Fiscal Year 2018 would decrease by approximately 40% to 50% as compared to the profit attributable to the shareholders for the year ended 31 December 2017 (FY 2017) of approximately HKD 155 million. The decrease in the Group's profit was mainly due to the turnaround of an unrealised net foreign exchange differences (which had no actual cash impact on the Group's cash flow) arose from certain inter-company balances within the Group denominated in foreign currencies (FY 2018: an unrealised net foreign exchange loss; Fiscal Year 2017: an unrealised net foreign exchange gain) as a result of the depreciation of the foreign currencies against Hong Kong Dollars as at 31 December 2018; (the re-financing of bank loans of the Group in January 2018 that resulted in the one-off write-off of capitalised interest and fee and related exchange losses; the increase in administrative expense mainly arising from the research and development related expenditure of new product under development in Fiscal Year 2018 and the increased labour costs. The Company is currently finalising the consolidated financial results of the Group for Fiscal Year 2018. The information contained in this announcement is only based on the information currently available to the Company and the preliminary assessment of the Board on the Management Accounts, which have not been audited or reviewed by the auditors and/or the audit committee of the Company. The final audited consolidated results of the Group for Fiscal Year 2018 is expected to be announced by the end of March 2019, which may be different from the figures and information contained in this announcement.