China Water Industry Group Limited provided earnings guidance for the six months ended 30 June 2018. Based on a preliminary review of the unaudited consolidated management accounts of the Group for the six months ended 30 June 2018 and the information currently available to the Board, it is expected that the Group may record a net profit of not less than HKD 45 million for the First Half of 2018 as compared to the net loss of HKD 41.50 million for the six months ended 30 June 2017. Comparing with the First Half of 2017, the Board considers that the turnaround from loss to profit are principally attributable to: the revenue and gross profit growth generated from renewable energy business as certain renewable energy projects commenced operation in the First Half of 2018; an increase in other operating income arising from interest income and service income received from renewable energy project management; absence of impairment loss on available-for-sale financial assets which was recorded in the First Half of 2017; the gain in fair value change of financial assets held for trading in the First Half of 2018 as compared with a loss recorded in the First Half of 2017; and sharing profit results from associates in the First Half of 2018 as compared to share a loss in the First Half of 2017. The effects of the aforesaid facts is expected to be partially offset by an increase in administrative expense and finance costs due to the acquisition and establishment new renewable energy companies. The Company is still in the process of finalising its unaudited consolidated financial statements for the First Half of 2018. The information contained in this announcement is only based on preliminary assessment made by the Board with reference to the information currently available, which has not been reviewed or audited by the auditors of the Company and may be subject to change. Shareholders and potential investors are advised to refer to the details of the group's financial results for the First Half of 2018, which are expected to be published before the end of August 2018.