Guangdong Tannery Limited provided earnings guidance for the six months ended June 30, 2018. The consolidated net loss of the Group for the six months ended 30 June 2018 is expected to increase by over 40% as compared with the consolidated net loss of HKD 32.46 million for the corresponding period in 2017. Such increase in the consolidated net loss was mainly due to the following factors: a decrease in turnover of the Group brought about by a decrease in sales volume of footwear leather products as a result of the continually shrink in footwear leather market demand in general, a significant increase in gross loss mainly attributable to an increase in unit cost of products and an increase in provision for inventories in the first six months of 2018 and an impairment loss of property, plant and equipment was further made.