Based on the group's preliminary review of the unaudited consolidated management accounts for the six months ended 30 June 2018, the board of directors of Lansen Pharmaceutical Holdings Limited informed the shareholders of the company and the potential investors that the group expects to record a noticeable decrease in its net profit for the six months ended 30 June 2018 as compared with the net profit for the six months ended 30 June 2017, such decrease was mainly attributable to the combined effects of: A substantial decrease in pre-tax net gain of disposal of shares in Zhejiang Starry Pharmaceutical Co. Ltd. for the six months ended 30 June 2018 compared with the corresponding period in the prior year. The absence of an one-off income from insurance claims for flood in the six months ended 30 June 2017; and the implementation of policies in relation to selling of pharmaceuticals in China and changes in operation strategies of the group: Significant decrease in the sales of agency products (mainly Kefumei, Hepai and Mati since the gradual implementation of the "two-invoices system" in China compare with the corresponding period in the prior year; and the operation strategies of the group have been adjusted upon appointment of a new Chief Executive Officer on 1 March 2018, in which the group would focus on the sales of core products and products with high profit margins, which resulted in the decrease in sales of product with low profit margins. The group also reduced the selling and administrative expenses, dismissed redundant staff to improve the average staff productivity and improved the cost structure and usage of funds.