HongDa Financial Holding Limited provided group earnings guidance for the year ended 31 December 2018. The board of directors of the company informed the shareholders of the company and potential investors that, based on the information currently available to the Board, the group is expected to record an increase in loss for the year ended 31 December 2018 as compared to a loss for the year ended 31 December 2017. The increase in loss for fiscal year 2018 is mainly attributable to decrease in revenue from materials trading business during fiscal year 2018 as a result of the negative sentiment of the PRC-US trade war, which affects global economy and reduces the demand for commodities; increase in finance costs (including interest on bank and other borrowings and interest on convertible bonds) compared with last year; increase in share of loss of an associate of the Group; and increase in impairment loss on the receivables after adoption of expected credit loss model under Hong Kong Financial Reporting Standard 9.