SH Group (Holdings) Limited board announced that, based on the preliminary review on the unaudited management accounts of the Group and the information currently available to the Board, the Group is expected to record a significant decrease in its net profit for the six months ended 30 September 2018 as compared to the net profit of approximately HKD 20.2 million for the same period last year. The Board considers that the significant decrease in net profit was mainly attributable to the following factors: Decrease in revenue since the majority of the projects undertaken during the Last Period were substantially completed in the year ended 31 March 2018 while some of the awarded projects currently on hand are at the early stage of project implementation, hence the revenue being recognized by the Group during the Current Period was minimal; and Decrease in gross profit and gross profit margin mainly due to intensified competition in the industry faced by the Group that the Group adopted a more competitive pricing strategy in securing new projects; and increase in direct staff costs as a result of more employees were hired to handle the awarded projects currently on hand.