Guangdong Tannery Limited provided consolidated earnings guidance for the year ended December 31, 2017. For the year, the company reported consolidated net loss of the Group for the year ended 31 December 2017 is expected to increase by over 140% as compared with the audited consolidated net loss of HKD 39.99 million in 2016. Such increase in the consolidated net loss was mainly due to the following factors: a decrease in turnover of the Group brought about by the decrease in sales volume and selling price of footwear leather products as a result of the continually shrink in footwear leather market demand in general; and according to the remediation request regarding coal-fired boilers issued by the PRC Government, the only boiler which was used in the processing of cowhides had been removed on 1 December 2017 and, accordingly, the Group had temporarily suspended production which resulted in further decrease in turnover of the Group in December 2017; (ii) a significant increase in gross loss mainly attributable to the decrease in selling price of products while increase in unit cost; (iii) a substantial provision for inventories is made, while reversal of provision for inventories was made in 2016; and (iv) an impairment loss of property, plant and equipment is further made. However, as the company is still in the process of finalising its consolidated results for the year ended 31 December 2017, the information contained in this announcement is only a preliminary assessment by the management of the company based on the latest available information and is subject to possible adjustments following further review as well as end of year adjustments, if any, and is not based on any figure or information which has been reviewed by the company' auditors or audit committee.