The board of directors of KangLi International Holdings Limited informed the shareholders of the Company and potential investors that, based on the preliminary assessment of currently available information, it is expected that the Group may record a decrease of approximately 50% in its net profit for the year ended 31 December 2019 as compared with that of RMB 50,921,000 for the corresponding period in 2018. The expected decrease in net profit for the year 2019 is mainly due to the decrease in selling prices of the Group's products which led to decrease in gross profit margins as a result of keen market competition.