Cathay International Holdings Limited provided earnings guidance for the year ended December 31, 2018. For the year, the company expects to record a noticeable decrease in its net profit for the year ended 31 December 2018 as compared with that for the year ended 31 December 2017. The decrease was mainly attributable to: (i) a delay in the disposal plan of shares in Zhejiang Starry Pharmaceutical Co. Ltd. and hence the pre-tax net gain of disposal of shares in Zhejiang Starry Pharmaceutical Co. Ltd. decreased significantly for the year ended 31 December 2018 compared with the year ended 31 December 2017; (ii) the absence of a one-off income from insurance claims for flood in the year ended 31 December 2017; (iii) the implementation of the operating strategies in Lansen's 2018 Interim Report, which Lansen would focus on its own branded products and speed up their development. Lansen expected a short period of transition for the replacement of agency products by its own branded products. As a result, Lansen actively decreased the sales of agency products and revenue from the sales of agency products decreased significantly compared with the year ended 31 December 2017; (iv) Lansen's adjustment of operating strategies to better manage working capital and to strengthen its cash flow as a priority. Lansen actively reduced the inventory levels of the distributors, resulting in a decrease in sales and gross profit contribution from the pharmaceutical products for the year ended 31 December 2018. However, the revised operating strategies did not affect the sales of Lansen's products by distributors to the ultimate consumers in the market; and (v) the decrease in the revenue of pharmaceutical segment for the year ended 31 December 2018 compared to the year ended 31 December 2017 was due to the Lansen's strategic decrease of selling expenses of pharmaceutical segment. Having said that, excluding the effect of above mentioned (iii) and (iv), the decrease in selling expenses of pharmaceuticals segment was actually proportionally higher than the decrease in sales of the pharmaceutical segment and therefore the segment profit of pharmaceuticals for the year ended 31 December 2018 increased as compared to the year ended 31 December 2017.