Lingbao Gold Group Company Ltd. provided group earnings guidance for the six months ended 30 June 2018. The board of directors of the company and together with its subsidiaries, the group informed the shareholders of the Company and potential investors that the unaudited net loss attributable to the equity shareholders of the Company for the six months ended 30 June 2018 is expected to be approximately RMB 67,000,000 as compared to the corresponding year of 2017, of which the net profit attributable to the equity shareholders of the Company was approximately RMB 26,450,000. Such turnaround from profit to loss was mainly due to the significant drop in gross profit margin for the smelting segment. The drop in the gross profit margin for the first half of 2018 was due to (i) the company have insufficient level of working capital to purchase gold concentrates to maintain high utilisation rate of the smelting production facilities and (ii) the smelting plant operation was suspended for about one month due to repair and maintenance and environment protection equipment upgrades.