Jiangnan Group Limited provided consolidated earnings guidance for the six months ended 30 June 2019. For the six months, the Group's profit attributable to the owners of the company for the six months ended 30 June 2019 is expected to increase by approximately 48%, as compared with that for the six months ended 30 June 2018 in the amount of approximately RMB 79,970,000. The expected increase in profit attributable to the owners of the company for the six months ended 30 June 2019 is mainly attributable to (i) the increase in turnover as compared with that for the six months ended 30 June 2018 of approximately RMB 5,811,987,000; (ii) the reduction in selling and distribution costs as compared with those for the six months ended 30 June 2018 of approximately RMB 158,453,000 as a result of the tightening of control by the Group over its expenses during the period under review; (iii) the reduction in administrative expenses for the period under review as compared with those for the six months ended 30 June 2018 of approximately RMB 159,805,000, which is mainly due to (a) the decrease in other tax charges for the period under review as compared with those for the six months ended 30 June 2018 as a result of tax concession; (b) the turning of an exchange loss for the six months ended 30 June 2018 to an exchange gain for the period under review; and (c) the reduction in travelling expenses for the period under review as compared with those for the six months ended 30 June 2018; and (iv) the reduction in finance costs for the period under review as compared with those for the six months ended 30 June 2018 of approximately RMB 167,741,000, which is mainly due to the reduction in the interest rates used in the discounting of bills during the period under review, all partially offset by the increase in the impairment losses on financial assets for the period under review (six months ended 30 June 2018: RMB 87,210,000).