HangKan Group Limited provided earnings guidance for the six months ended June 30, 2019. Based on a preliminary review of the unaudited consolidated management accounts of the Group for the six months ended 30 June 2019 (the "Period"), the Group expects to record a net profit for the Period as compared to a net loss for the corresponding period in 2018. Based on the information currently available, the Board considers the turnaround from loss to profit to be mainly attributable to (i) the rise in revenue due to strong market demand and management's marketing effort; and (ii) the increase in gross profit margin due to the combined effect of increase in average selling price and decrease in unit production cost of both drilling mud and pelletising clay.