Nan Nan Resources Enterprise Limited provided consolidated earnings guidance for the year ended March 31, 2018. Based on the information currently available to the Board, since more sales effort has been put by the senior management of the Xinjiang office of the Group, it is expected that the Group's total revenue for the year ended 31 March 2018 may record a substantial increase of approximately 150% to approximately HKD 182.4 million, as compared to the total revenue of the Group for the year ended 31 March 2017 of approximately HKD 73 million. However, as there was a decrease in gross profit margin, the gross profit of the Group for the year ended 31 March 2018 is expected to increase by approximately 112% to approximately HKD 52 million. Despite the aforesaid substantial increase in the total revenue and gross profit, the Group expects to record a decrease in the net profit for the year ended 31 March 2018 as compared to the net profit of approximately HKD 48.3 million for the year ended 31 March 2017, which is primarily attributable to (i) the decrease in profit arising from the change in fair value of the convertible bond of the Company for the year ended 31 March 2018; and (ii) the significant impairment loss expected to be recognized in respect of the mining rights and related fixed assets of Kaiyuan Open Pit Coal Mine of the Group (the "Coal Mine Assets") for the year ended 31 March 2018 due to the reasons as disclosed in the announcement of the Company dated 14 November 2017 (the "14 November Announcement"). According to the draft valuation report of the convertible bond of the Company and the Coal Mine Assets, as well as the draft consolidated statement of profit or loss and other comprehensive income of the Group, the profit arising from the change in fair value of the Company's convertible bond for the year ended 31 March 2018 is expected to be approximately HKD 14.4 million (the final figure is subject to any adjustment to be made under applicable accounting principles), as compared to the profit of approximately HKD 56 million arising from the change in fair value of the Company's convertible bond for the year ended 31 March 2017.