BYD Electronic (International) Company Limited provided unaudited earnings outlook for the year ended December 31, 2018. For the period, the company expects that the profit attributable to the shareholders of the Company will be reduced by approximately 13% to 16% compared with the year ended 31 December 2017. For the year ended 31 December 2017, profit attributable to the shareholders of the Company was RMB 2,584,868,000. The Board considers that the expected decrease in the profit attributable to the shareholders of the Company was primarily attributable to: Impacted by the downturn in macro-economy and decline in the industry demand, especially weak demand for the handset market and intensified competition in the upstream supply chain in the fourth quarter, the profit in the fourth quarter of the Group decreased, thereby resulting in the decrease in profits for 2018. The Group increased investments in the research and development of new business, such as automobile intelligent system, glass and ceramics in 2018, while in response to the increase in demand for glass and ceramics markets, actively expanding its production capacity, which led to the increase in short-term costs.