Shanghai Fudan Microelectronics Group Company Limited provided earnings guidance for the year ended December 31, 2018. The board of Directors of the company informed the shareholders of the company and potential investors that the company together with its subsidiaries (the "Group") is expected to record a substantial decrease in profit attributable to the owners of the parent for the year ended 31 December 2018 as compared to the profit for the year ended 31 December 2017. The expected decrease in profit attributable to the owners of the parent for the year ended 31 December 2018 will be approximately 40% over the last year and is mainly due to (i) the Group's continuing investment in research and development resulted with significant increase in R&D costs; (ii) consolidated profit margin dropped due to increasing market competition; and (iii) decrease in other income.