Nanjing Sinolife United Company Limited provided profit guidance for the year ended 31 December 2018. For the year, the company expects to remain relatively stable as compared to that for the year ended 31 December 2017. However, the Group is expected to record a loss of approximately RMB 110 million for the year ended 31 December 2018 as compared with a profit of approximately RMB 10.8 million for the year ended 31 December 2017. During the year ended 31 December 2018, the Company has significantly reduced its advertising and marketing activities in the Chinese market, thereby affecting the performance of the Group. Meanwhile, the performance of Shanghai Hejian Nutritional Food Products Company Limited and Good Health Products Limited for the year ended 31 December 2018 did not meet the Company's expectation. As a result, it is expected that there would be impairment on the goodwill of each of Hejian and GHP for the year ended 31 December 2018. Besides, under prudent assessment made by the Company based on the macroeconomic factors and the competitive environment in the market, it is expected that there would be provision made for the inventories of the Group for the year ended 31 December 2018. The expected impairment on goodwill and the provision for inventories are non-cash items and have no effect on the Group's daily operations and cash flow.