South China Holdings Company Limited provided earnings guidance for the six months ended June 30, 2018. The board of directors of group announced that based on the preliminary review of the unaudited consolidated management accounts of the group, the group expects to report a significant decrease in profit for the six months ended 30 June 2018 as compared with the unaudited results for the corresponding period in 2017. This is mainly attributable to (1) rising costs of material and labour cost leading to increase in cost of sales; and (2) fluctuation of Renminbi leading to a loss arising from operations and foreign currency forward contracts, as compared with a gain reported in the corresponding period in 2017.