China Cinda Asset Management Co., Ltd. provided consolidated earnings guidance for the year ended December 31, 2018. The board of directors of the Company wishes to inform the shareholders of the Company and potential investors that, based on the preliminary assessment of the unaudited consolidated management accounts of the Group for the year ended December 31, 2018, it is expected that the net profit attributable to the shareholders of the Company for the year ended December 31, 2018 will be approximately 30% lower than that of the corresponding period in 2017 (the decline percentage would be approximately 20% if excluding the recognition of net gain (before tax) of RMB 3.37 billion from disposal of equity interests of Cinda P&C, previously a subsidiary of the Group, by the Company in April 2017). The Company believes that the main reasons for the decrease include: (1) the Company began to implement IFRS 9 ­ Financial Instrument in 2018, given the large fluctuations in the capital market, certain financial assets at fair value held by the Group demonstrated a decrease in valuation, which in turn led to a significant unrealized loss in fair value changes; (2) due to the changes in the macro economy, the Company provided large amount of provisions for certain financial assets after prudent consideration; and (3) due to the impact of capital market fluctuations on its equity assets, Happy Life (a subsidiary of the Group) recorded a significant loss attributable to the shareholders of the Company.