Dongguang Chemical Limited provides earnings guidance for the year ended December 31, 2018. For the year, the Group is expected to record a significant increase in net profit by no less than 110% for the year ended 31 December 2018 as compared to the year ended 31 December 2017. The increase in the net profit of the Group was mainly due to an increase in the average selling prices of urea, methanol and other by-products, which was partly offset with the increase in costs of sales mainly due to (i) the increase in average purchase price of raw materials and (ii) the impact of the provision for utilisation of the prepaid value added tax of approximately RMB 54 million, principally as a result of certain input value added tax may not be eligible for tax deduction. The increase in average selling prices of urea, methanol and other by-products is supported by (i) the continuous improvement in domestic and international macro economy in 2018; (ii) the balanced supply and demand of urea products due to the industry consolidation and the increasing pressure on environment protection in the People's Republic of China which led to an overall scale down in the supply of urea; and (iii) the increase of coal price.