The board of directors of Kenford Group Holdings Limited informed the shareholders of the company and potential investors that based on the preliminary review of the unaudited consolidated management accounts of the group for the six months period ended September 30, 2017, the management of the company expects that the Group will record an increase in loss attributable to owners of the company for the six months period ended 30 September 2017 as compared to the loss attributable to owners of the company of approximately HKD 4,238,000 for the six months period ended 30 September 2016. The expected increase in loss, as compared to the corresponding period in 2016, is primarily attributable to: 1. The decrease in sales of approximately 9% as a result of a decrease in orders from the European and Mainland China markets caused by their struggling economies and the decrease in selling price for the matured products; and 2. The surge in material cost, especially in packaging material, plastic resins and copper, which has hampered the company's gross profit margin.