Casablanca Group Limited provided consolidated earnings guidance for the six months ended June 30, 2018. Based on the preliminary review of the latest unaudited consolidated management accounts of the Group for the six months ended 30 June 2018, and taking into consideration of the information currently available to the Board, the Group is expected to record a loss for the six months ended 30 June 2018 instead of a substantial decrease in the unaudited consolidated profit attributable to the Shareholders for the six months ended 30 June 2018 as compared to that for the corresponding period in 2017 as disclosed in the Profit Warning Announcement. Based on the information currently available, the Board believes that, save for those factors disclosed in the Profit Warning Announcement, the expected loss is primarily attributable to the following factors: the exchange loss recorded by the Group in June 2018 exceeded the exchange gain for the five months ended 31 May 2018 due to a sharp depreciation of the Renminbi against the Hong Kong Dollar for the month of June 2018; and operation losses of the subsidiaries of the Company in the People's Republic of China for the month of June 2018 were more than that had been expected.