The board of directors of Goldbond Group Holdings Limited inform the shareholders of the company and potential investors that, based on the information available, the group is expected to record a significant decrease in loss for the year ended 31 March 2018 as compared to the year ended 31 March 2017. The improvement in the loss position was mainly attributable to the net effect of: a decrease in share of loss of a joint venture, Rongzhong Group Limited, which is owned as to 40% by the Group, to approximately HKD 3 million compared to HKD 1,000 million. a decrease in impairment, net of gain, on interest in the Joint Venture by approximately HKD 250 million; and an increase in impairment losses on advances provided to customers of approximately HKD 126 million. In this connection, references are made to the announcements of the company dated 18 April 2016, 3 May 2018 and 28 May 2018 in relation to the Loan Agreement as defined therein. The Board, after taking into account the currently available information on the financial status of Yong Hua International Limited as borrower and Mr. Xie Xiaoqing as guarantor, considers that the chance of recovering the debt due and owing by them is low. Accordingly, it is expected that an impairment loss of HKD 136 million would be recognized.