CITIC Dameng Holdings Limited provided unaudited consolidated earnings guidance for the year ended December 31, 2019. The company group expects to record a loss attributable to shareholders of the company of approximately HKD 200.0 million, which compares to a profit attributable to shareholders of HKD 330.9 million for the year ended 31 December 2018. The reasons for the significant adverse turnaround from profit to a loss are as follows: As detailed in the First Profit Warning Announcement, due to the very much softer trading conditions, the Group recorded a significant drop in the profit attributable to shareholders for the four months ended 31 October 2019 as compared with last year; The adverse conditions referred to in paragraph 1 above continued to prevail in the remaining two months ended 31 December 2019 and hence the operating performance of the Group for these two months continued to suffer from further weakening EMM market with average selling price even lower than the preceding four months; and Based on the impairment assessment of the Group's assets at 31 December 2019, major non-cash impairment provisions on the following assets were made: (a) Due to the rapidly cooling down in market demand of manganese ores and significant decrease in market ores price since the fourth quarter of the year 2019, the operating environment and hence liquidity risk for a large number of alloy producers and manganese ores traders including one of major customers in China significantly worsened. This led to delays of payment from this customer and therefore overdue trade receivable balances as at 31 December 2019. As a result, the expected credit loss and hence the impairment loss of trade and notes receivables recognized in accordance with current accounting practice for the year ended 31 December 2019 increased significantly to not less than HKD 75.0 million; (b) Impairment loss on property, plant and equipment of not less than HKD 50.0 million arising in the course of continuous modifications and in some cases scraping existing production facilities in accordance with overall strategy to restructure product mix shifting to more battery materials production; and (c) Impairment loss of not less than HKD 40.0 million recognized on mining right in respect of Changgou Manganese Mine of which have a 64% indirect equity interest. The company delayed expansion plan of Changgou Manganese Mine amidst uncertain operating environment led to an adjustment to its value-in-use and therefore impairment in value of the mining right.