China Rundong Auto Group Limited provided earnings guidance for six months ended June 30, 2018. The company expected to record a significant decline in its profit for the six months ended 30 June 2018 as compared to the corresponding period of 2017. Such decrease was primarily attributable to the following factors: the Group acquired a number of new entities as detailed in the 2017 annual report of the Company. Upon the completion of these acquisitions, these entities have been undergoing post acquisition integration. The aftermath synergies and combined results were yet to be crystalised in the period ended 30 June 2018 as anticipated, which was due to, among others, the realignment in the overall organisation structure, transitional changes of key management and staff relocation. The increase in total financing amount arising from the acquired entities also contributed to the increase in financial costs; and affected by the factors such as the general slow growth of the passenger vehicle market in the PRC, decline in growth rate of sales of luxury brand vehicles and weak and insufficient demand for entry level vehicles, the Group has adopted more prudent operating strategies and corresponding measures in the first half of 2018, which included slowing down the pace of bulk purchases and gradually reducing level of the inventory, which indirectly led to the short-run slowdown in terms of sales volume of new automobile.