Hong Wei (Asia) Holdings Company Limited provided preliminary earnings guidance for the year ended December 31, 2018. For the year, the board of directors of the Company announced shareholders of the Company and potential investors that, the company expects to report a significant loss for the financial year ended 31 December expects to report a significant loss for the financial year ended December 31, 2018 as compared to a net profit of approximately HKD 30.3 million for the last year fiscal year 2017 mainly attributable to the following developments in the last quarter of fiscal year 2018 as the group has seen a decline in sales volume and average unit selling price of particle boards due to the impact of market conditions, compared to the last quarter of last year, as a result of which the gross profit for fiscal year 2018 is estimated to be approximately 20% less than that for fiscal year 2017; and it has come to the attention of the group that the grant by the relevant government department of timber wood harvesting quotas have been materially curtailed in 2018 as part of the PRC government's strengthening environmental protection drive, and such enhanced control is expected to last for a period which is unknown to the group at the moment. The group understands that such curtailment or suspension is to be implemented nationwide although it is not aware of there being any specific published laws, regulations, notices or decisions in relation to the curtailment or elimination of timber wood harvesting quotas for privately owned enterprises. The group will continue to apply for the harvesting quotas, but the unpredictability of the group's ability to obtain such quota is likely to affect the future harvesting plan of the group and result in a substantial loss arising from changes in the fair value less costs to sell of the group's biological assets.