Directel Holdings Limited provided consolidated earnings guidance for the three months ended March 31, 2019. Based on the information currently available and the preliminary review of the unaudited consolidated management accounts of the Group for the three months ended March 31, 2019 by the board of directors of the company, the Board wishes to inform the shareholders of the company and potential investors that it is anticipated that the Group would record a net loss for the period as compared to a net profit of the Group for the corresponding period in 2018. The anticipated loss was primarily attributable to a significant decrease in revenue generated from the provision of telecommunications services in Hong Kong as the contracts with committed subscription which had been entered into in 2017 were completed in 2018 and the Group was unable to secure new contracts with committed subscription with distributors in the first quarter of 2019 for the 4G products; the significant decrease in the revenue mentioned in which in turn led to a gross loss for the Period as a certain amount of the operating costs in this sector are fixed costs in nature; an increase in fair value change on contingent consideration payables for the acquisition of the Joint Top Group in September 2017; and an increase in administrative and operating expenses mainly from the increase in professional fees, staff costs and repair and maintenance fees.