China Gem Holdings Limited provided unaudited consolidated earnings guidance for the ended 31 December 2018. The board inform the shareholders of the company and potential investors that, based on the preliminary review on the unaudited consolidated management accounts of the Group for the year ended 31 December 2018 and the information currently available to the Group, the Group is expected to record a decrease in turnover by approximately 9% and recorded a consolidated net loss for the year ended 31 December 2018 as compared to the consolidated net profit for the seventeen months ended 31 December 2017. The Board considers that the aforesaid turnaround from profit to loss is mainly attributable to a significant increase in finance costs (including interest on other borrowings and interest on senior notes) due to full year effect; fair value loss on financial assets through profit or loss during the year 2018 whereas fair value gain on financial assets through profit or loss for the seventeen months ended 31 December 2017; and increase in impairment loss on receivables after adoption of new expected credit loss impairment model in Hong Kong Financial Reporting Standard 9 ``Financial Instruments''.