CHerish Holdings Limited provided consolidated earnings guidance for the six months ended 30 September 2018. The group expects to record a gross loss, a net loss ranging from approximately HKD 5.0 million to approximately HKD 9.0 million for the six months ended 30 September 2018 as compared to a gross profit of approximately HKD 15.1 million and a net profit of approximately HKD 7.9 million for the six months ended 30 September 2017. The Board considers that the decline was mainly attributable to: keen competition in the industry resulting limited number of new projects awarded and decreased contract revenue for the six months ended 30 September 2018. During the six months ended 30 September 2018, the group was awarded two projects in Islands District with total contract sum of approximately HKD 13.6 million whereas in contrast the group was awarded one project with contract sum of approximately HKD 305.1 million in May 2017; additional direct costs incurred in a roadworks, drainage and duct works project in Islands District arising from additional work procedures, workers, machines and time being required to deal with the order instructed by the main contractor. The group is negotiating with the customer of the project to seek compensation for additional time and costs, but such compensation could not be determined at the moment; and increase in labour cost expenditure, subcontracting fee and overhead cost in a site formation project in Shatin District due to delay in work progress as a result of changing working schedules as requested by the main contractor. The longer project duration has exerted pressure on the profit of the project and decreased the overall gross profit of the project.