HMV Digital China Group Limited provided earnings guidance for the three months ended September 30, 2018. For the three months, the company expects to record a loss for the three months ended 30 September 2018 as compared to the corresponding period in 2017. Such loss was mainly due to reasons as stated in the followings: There is a drastic slowdown in the cultural and entertainment industry in the PRC in the second half year in 2018 due to an unexpected change in government policies in the PRC. The artiste management sector was slowed down; the slowdown of retail and consumer markets in Hong Kong and the PRC has been notable due to worsening political ties within the US and China. And the retail industry further slowed down due to typhoon and the decrease in asset prices in Hong Kong, which affect consumer sentiments; and there are no major titles of movies which were distributed in Hong Kong and the PRC during the three months ended 30 September 2018.