China Southern Airlines Company Limited provided earnings guidance for the year of 2018. Based on preliminary calculations by the finance department of the Company, it is expected that the net profit attributable to shareholders of the Company for the year of 2018 will decrease by RMB 2,774 million to RMB 3,297 million, representing a decrease of 47% to 56% compared with the corresponding period of the previous year (based on the financial statements which were prepared in accordance with the People's Republic of China Accounting Standards for Business Enterprises ("PRC GAAP")). It is expected that the net profit after deducting the non-recurring profit or loss attributable to shareholders of the Company for the year of 2018 will decrease by RMB 2,763 million to RMB 3,171 million, representing a decrease of 53% to 61% compared with the corresponding period of the previous year (based on the financial statements which were prepared in accordance with the PRC GAAP).