Reach New Holdings Limited provided consolidated earnings guidance for the year ended December 31, 2017. For the year, the group is expected to record a loss as compared to the net profit of the group of approximately RMB 9.6 million recorded for the year ended 31 December 2016. Such loss is mainly attributable to an approximate 2% decrease in revenue principally due to the decrease in sales volume caused by the changes of product structure initiated by garment brand companies; an approximate 3% decline in gross profit margin primarily caused by the increment of production costs; an increase in listing expenses recognized during the year; and the additional administrative expenses incurred after the listing of the company.