Huazhang Technology Holding Limited provided unaudited consolidated earnings guidance for the six months ended December 31, 2018. The company group is expected to record a loss attributable to owners of the company amounting to approximately RMB 34.4 million for the six months ended 31 December 2018 as compared to the profit attributable to owners of the company amounting to approximately RMB 22.0 million for the six months ended 31 December 2017. It is mainly due to the fact that (i) certain criteria of adjustment to the initial consideration in relation to acquisition of head box business have been fulfilled, the group accrued a contingent consideration expenditure amounting to approximately RMB 28.6 million; and (ii) the group made an impairment provision for the goodwill in relation to the acquisition of logistics business amounting to approximately RMB 20.0 million for the review period.