China Oriental Group Company Limited provided consolidated earnings guidance for the six months ended June 30, 2019. The group is expected to record a decrease in net profit for the relevant period by approximately 35%-55%, as compared with the corresponding period in 2018. Based on the information available to date, such expected decrease in net profit of the Group for the Relevant Period is mainly attributable to the combined effects of, among others, (i) an increase in production cost of the Group due to rising price of raw materials, in particular iron ores; and (ii) a decrease in sales volume of products of the Group due to the imposition of various production restriction policies on the Group during the Relevant Period. As a result, a notable decrease in the gross profit of the Group during the Relevant Period is expected to be recorded.