Risecomm Group Holdings Limited board of directors announced the shareholders of the Company and potential investors that, based on a preliminary review of the unaudited consolidated management accounts of the Group for the year ended 31 December 2017 and other information currently available to the Board, the Group is expected to record a significant decrease in profit attributable to the equity Shareholders as compared to that of the year ended 31 December 2016. Based on the information currently available to the Board, the expected significant decrease in profit attributable to the equity Shareholders for the year ended 31 December 2017 was mainly attributable to the increase in general and administrative expenses incurred by the Group during the year ended 31 December 2017 as compared to that of the corresponding period in 2016, including but not limited to, an increase in non-recurring listing expenses; and an increase in professional fees incurred subsequent to the listing of the Company's shares on the main board of The Stock Exchange of Hong Kong Limited in June 2017, an increase in research and development expenses which is in line with planned research and development project progress, a decrease in revenue primarily in the automated meter reading (AMR') business segment which was attributable to industrial cyclical variability and a slower than expected pace of procurement of smart meters by State Grid in 2017, resulting a delay in delivery of confirmed orders and a decrease in gross profit margins of the Group for the year ended 31 December 2017 as compared to that of the corresponding period in 2016. Despite an increase in gross profit margins of smart energy management business for the year ended 31 December 2017, the gross profit margins of AMR business for the year ended 31 December 2017 decreased slightly as compared to that of the corresponding period in 2016 and which was mainly attributable to a decrease in revenue from sales of products to customers from meters manufacturers for the year ended 31 December 2017.