Solargiga Energy Holdings Limited provided earnings guidance for the year ended 31 December 2018. The company expected that the Group will record a substantial loss for the financial year ended 31 December 2018 as compared to a profit for the financial year ended 31 December 2017. The Board considers that although the Group's high-end photovoltaic products continued to be welcomed by domestic state-owned enterprises and multinational enterprises and total shipment grew by 15.2% compared to 2017, having affected by the photovoltaic industry policy of the Chinese government issued in 2018 as previously disclosed in the 2018 interim report, the sudden and rapid freezing of market demand caused the supply side of the market to irrationally cut prices in the short term. While not only did the price cuts fail to immediately stimulate demand, it also caused deferrals in procurement by the demand side, hence resulting in substantial inventory provision for the Group. As such, the Group's overall gross profit was being compressed. In addition, due to changes in market conditions as aforesaid, the Group has recognised fixed asset impairment, hence resulting in substantial losses.