AVIC International Holding (HK) Limited provided group earnings guidance for the year ended December 31, 2017. The Group is expected to record revenue from the property development and investment business for the year ended 31 December 2017 of approximately HKD 1.5 billion, representing a significant increase as compared to the same period in 2016 (2016: approximately HKD 100 million). However, as a result of the significant increase in cost of sales (the inventories of properties from the property development and investment business of the Group are expected to be impaired and the impairment will be included in the cost of sales), the Group is expected to record gross loss of approximately HKD 200 million (2016: gross profit of approximately HKD 30 million). The Group is expected to record a significant decrease of approximately 50% in loss before tax for the year ended 31 December 2017. The improvement in the loss position was mainly attributable to the decrease in the losses of certain investments held by the Group, as well as a one-off gain on disposal of convertible loans of approximately HKD 87 million recorded.