Shanghai Zendai Property Limited provided earnings guidance for the six months ended 30 June 2018. The group is expected to record an increase in loss attributable to owners of the company for the six months ended 30 June 2018, as compared to the loss attributable to owners of the company for the six months ended 30 June 2017. Based on the preliminary review of the management accounts of the group and information currently available to the company, such loss was mainly due to the following reasons: The group recorded a share of profit of HKD 174,290,000 from Nanjing Thumb Commercial Development Co., Ltd, previously a joint venture of the group, in the six months ended 30 June 2017. Nanjing Zendai then became a subsidiary of the company in December 2017 and accordingly its financial results were consolidated in the group's financial statements for the six months ended 30 June 2018. The properties of Nanjing Zendai were re-measured to their fair value at the Acquisition Date and the fair value gain was recorded as profit of the Group in the financial year 2017. The cost of sales of the Nanjing Zendai Properties has increased due to the fair value re-measurement and therefore the gross profit in respect of sales of the Nanjing Zendai Properties in the six months ended 30 June 2018 is expected to decrease and the profit attributable to Nanjing Zendai included in the Group's consolidated financial results for the six months ended 30 June 2018 has been much smaller as compared to the share of profit from Nanjing Zendai in the previous corresponding period referred to above; and An increase in finance cost which is attributable to the increased interest cost and decrease of capitalized interest.