Yue Yuen Industrial (Holdings) Limited provided consolidated earnings guidance for the six months ended June 30, 2018. For the six months, the Group is expected to record a decrease in its profit attributable to owners of the company of around 40%-45% for the period when compared to that for the corresponding six-month period in 2017. Based on the information currently available to the Group, the aforesaid decrease in profit attributable to owners of the company for the Period is mainly attributable to various factors, including the following: a non-recurring profit for totaling USD 17 million was recognized in the first six-month period in 2017, which included a gain of approximately USD 9 million due to fair value changes on derivative financial instruments and a one-off gain of approximately USD 10 million on disposal of associates. During the first six-month period in 2018, by contrast, there was an accounting loss of approximately USD 22 million due to fair value changes on derivative financial instruments, which are mainly related to the foreign exchange contracts used for hedging purpose. Such unrealized and noncash loss was attributable to a sharp depreciation of Renminbi and Indonesia Rupiah against USD amid the increased global trade tensions during the Period under review. An increase of approximately USD 18 million in finance cost during the Period as compared to the same period in 2017, attributable to increased borrowing level to improve the Group's cost of capital. Manufacturing revenue during the Period decreased by around 5.5% due to fluctuating order patterns and unfavorable product mix, which resulted in operating deleverage and negatively impacted gross profit margin for the manufacturing business.