China Graphene Group Limited provided that based on the preliminary assessment of the latest unaudited consolidated management accounts of the group and the information currently available to the board, the group is expected to record a substantial loss of approximately HKD 80 million for the year ended December 31, 2018 as compared to a profit of approximately HKD 51,898,000 for the year ended 31 December 2017. The expected substantial loss of the Group were mainly due to the cessation of graphene business in Japan, and as a result, the prepayment for equipment and machinery for manufacturing of graphene recorded in the accounting books of overseas subsidiaries amounting to approximately HKD 54,516,000 has been written off for the year ended 31 December 2018.