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CHINA TING GROUP HOLDINGS LIMITED 華 鼎 集 團 控 股 有 限 公 司
(Incorporated in the Cayman Islands with limited liability)
(Stock code: 3398)
PROFIT WARNING
FOR THE YEAR ENDED 31 DECEMBER 2018
This announcement is made by the board (the ''Board'') of directors (the ''Directors'') of China Ting Group Holdings Limited (the ''Company'', which together with its subsidiaries, the ''Group'') pursuant to Rule 13.09(2) of The Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the ''Listing Rules'') and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).
Following a preliminary review of the information currently available to the Board, which includes, but without limitation to, the unaudited management accounts of the Group for the year ended 31 December 2018, the Board wishes to inform the shareholders (the ''Shareholders'') of the Company and prospective investors of the Company that the net profit before tax of the Group for the year ended 31 December 2018 would decrease by approximately 70-80%, as compared with the net profit before tax of the Group of HK$157.3 million for the year ended 31 December 2017, because of the following reasons:
(1) the amount of gross profit of the Group for the year ended 31 December 2018 would decrease by approximately 15.3%, as compared with the amount of gross profit of the Group for the year ended 31 December 2017 of HK$665.3 million. The decrease in the amount of gross profit was due to the keen price competition faced by the Group;
(2) the increase in the amount of the provision for impairment losses for trade receivables by approximately 30% because of the commencement of bankruptcy or analogous proceedings by certain customers of the Group;
(3) an one-off compensation from available-for-sale financial assets of approximately
HK$10 million received by the Group in 2017, which no such compensation has been received by the Group for the year ended 31 December 2018.
The Company is still in the process of finalising the annual results of the Group for the year ended 31 December 2018 (the ''Annual Results''). The information disclosed in this announcement represents a preliminary assessment by the Board based on the information currently available to it, which has yet to be reviewed or audited by the audit committee of the Board or the auditor of the Company. Hence, the Annual Results may be different from the information disclosed herein.
The Board expects that the announcement on the Annual Results will be published before the end of March 2019 in full compliance with the requirements under the Listing Rules.
Shareholders and prospective investors of the Company are advised to exercise caution when dealing in the shares of the Company.
By order of the Board
CHINA TING GROUP HOLDINGS LIMITED
TING HUNG YI
Chief Executive Officer
Hong Kong, 14 March 2019
As of the date of this announcement, the executive Directors are Mr. TING Man Yi, Mr. TING Hung Yi, Mr. DING Jianer and Mr. CHEUNG Ting Yin, Peter and the independent non-executive Directors are Mr. WONG Chi Keung, Mr. LEUNG Man Kit and Mr. CHENG Chi Pang.