Dukang Distillers Holdings Ltd. provided earnings guidance for the first quarter ended September 30, 2017. The Board of Directors of the company announced that the Group expects its overall revenue and earnings to be significantly lower for the first quarter ended 30 September 2017 compared to the three months ended 30 September 2016. Due to the prolonged severe pollution and smog which caused a significant decline in the purchase of baijiu products by the distributors for the financial year ended 30 June 2017; the Group, in order to retain market share launched a sales promotion in the form of giving Dukang baijiu products from the Group existing inventory to distributors. As a result of this sales promotion, distributors were unable to digest the increase in inventory during first quarter of 2018, thus causing a significant decline in sales for the period. This significantly lowered the revenue and earnings.