Wanjia Group Holdings Limited announced that based on the preliminary assessment of the unaudited consolidated management accounts of the Company for the year ended 31 March 2018, it is expected that the loss for the Current Period of the Company will increase by approximately 115% as compared with the loss for the year ended 31 March 2017. The expected increase was mainly attributable to, among others, the following reasons: with the strong pharmaceutical distribution market layout in Fujian Province by a number of pharmaceutical groups with enormous manufacturers' resources, the competition of the pharmaceutical wholesale and distribution business as well as its talents was intensified; the medical reform policy further controlled the pharmaceutical costs in public hospitals in Fujian Province and had reduced the overall size of the pharmaceutical distribution business in public hospitals. In terms of distribution policy, it also broke the original rules that essential medicines in public hospitals in Fujian Province were only distributed by 10 wholesale companies, thereby causing material adverse impact on the operation and its overall performance of the Group in the pharmaceutical wholesale and distribution business; and the competition in retail business market was further intensified which led to an increase in promotion and labour costs as compared with the Corresponding Period, and hence the overall gross margin was decreased.