The board of directors of Lapco Holdings Limited informed the shareholders of the company and potential investors that based on the information currently available to the Board, including the unaudited consolidated management accounts of the group for the year ended 31 December 2017, the group is expected to record a loss for the year ended 31 December 2017 as compared to the net profit recorded for the year ended 31 December 2016. Based on the information currently available to the Board, despite that there was an increase of not less than 10% in revenue for the year ended 31 December 2017 as compared to that for fiscal year 2016, the expected loss is mainly attributable to the non-recurring expenses incurred by the group in relation to the listing of the shares of the company on GEM as disclosed in the prospectus dated 30 June 2017; an increase of not less than 10% in the group's cost of services for the year ended 31 December 2017 as compared to that for fiscal year 2016 because of higher labour costs, petrol expenses and vehicle expenses; an increase of not less than 30% in the group's administrative expenses for the year ended 31 December 2017 as compared to that for fiscal year 2016 because of post-listing professional expenses and higher staff costs due to additional headcounts.