China Water Industry Group Limited provided earnings guidance for the year ended December 31, 2018. For the year, the company may record a net profit of not less than HKD 60 million for the full year of 2018 as compared to the net profit of HKD 10.90 million for the year ended 31 December 2017. Comparing with the full year of 2017, the Board considers that such increase in the net profit were principally attributable to: (i) the increase in revenue and gross profit from renewable energy business as certain new renewable energy projects commenced operation in the full year of 2018; (ii) an increase of gross profit from construction service for water supply; and (iii) the absence of redemption loss on investment fund which occurred in full year of 2017. The effects of the aforesaid factors are expected to be partially offset by an increase in administrative expense and finance costs due to the acquisition and establishment new renewable energy companies and a possible provision on impairment loss in relation to certain renewable energy projects.