The board of directors of LUZHENG FUTURES Company Limited informed the shareholders of the company and potential investors that, based on information currently available to the company and the preliminary assessment on the unaudited consolidated management accounts of the Group for the six months ended 30 June 2019, the Company expects the Group to record a decrease of approximately 55% to 60% in net profit attributable to the Shareholders for the six months ended 30 June 2019 as compared to the corresponding period in 2018. The current period’s expected decrease in business performance was mainly due to the following factors: the downward adjustment of market interest rates and the changes in the fee cut policies of the exchanges during the six months ended 30 June 2019, resulting in a significant decline in the income of futures companies. Meanwhile, due to the restrictions on the basic resources of the exchanges’ programmatic trading, the Company’s programmatic trading has shrunk significantly as compared with last year, resulting in further decline in income; a significant swing in the Company’s investment income as a result of the changes in the fair value of the financial instruments held by the Company; and in response to the internationalization of the futures market of the Mainland China, the Company has been actively expanding its international footprints, and new establishments have increased the operating costs in the short term. The Company will further make great efforts in developmental innovation and transformation, strengthen the risk control, optimize and improve the Company’s profit structure to overcome the adverse impact of market volatility on the Company’s operations.