The board of directors of Xinchen China Power Holdings Limited informed the shareholders of the company and potential investors that, based on the preliminary review by the group's management of the unaudited consolidated management accounts of the group, the company expects that the profit attributable to its equity shareholders for the year ended 31 December 2017 will record a decrease comparable to the level of decrease mentioned in the interim profit warning published on 28 July 2017. Such decrease was mainly due to a decrease in the sales of N20 engines as the production of N20 engines was discontinued in 2017 for BMW vehicles and the intensifying price competition for the group's traditional engines resulting in a lower profit margin. The decrease in government grants recognized and increase in amortization of intangible assets also accounted for the decrease in profits.