Jiangnan Group Limited provided consolidated earnings guidance for the year ended 31 December 2018. For the period, based on the preliminary assessment of the Group's unaudited consolidated management accounts, the company expects its profit attributable to the owners of the Company for the year ended 31 December 2018 is expected to increase by approximately 78%, as compared with that for the year ended 31 December 2017 in the amount of approximately RMB 103,912,000. The expected increase in profit attributable to the owners of the Company is mainly due to the increase in turnover as compared with that for the year ended 31 December 2017 of approximately RMB 11,374,969,000, which in turn has driven an increase in gross profit for the year ended 31 December 2018; and the reduction in other losses as compared with that for the year ended 31 December 2017 of approximately RMB 430,816,000, which is mainly due to the significant decrease in the write-down of inventories during the year under review (year ended 31 December 2017: approximately RMB 382,245,000), which is partially offset by the increase in impairment losses (representing the impairment loss on trade and other receivables and impairment of goodwill) during the year under review (year ended 31 December 2017: approximately RMB 47,969,000); the increase in selling and distribution costs during the year under review (year ended 31 December 2017: approximately RMB 276,756,000); the increase in administrative expenses during the year under review (year ended 31 December 2017: approximately RMB 242,258,000); and the increase in finance costs during the year under review (year ended 31 December 2017: approximately RMB 251,913,000).