The board of directors of SH Group (Holdings) Limited 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 notable improvement in the operating results and a net profit for the six months ended 30 September 2017 as opposed to a net loss for the corresponding period ended 30 September 2016. The Board considers that the aforementioned turnaround from net loss to net profit was mainly due to (i) the increase in revenue recognized from the engineering service contracts mainly attributable to the increase in average contract size of the Group's projects in progress; (ii) the increase in gross profit margin mainly attributable to a change in project mix towards more residential projects, which generally offer a higher gross profit margin than non-residential projects; and (iii) there was no one-off listing expenses incurred during the six months ended 30 September 2017. If the effect of the one-off listing expenses incurred during the six months ended 30 September 2016 is excluded, the Group would be expected to record a significant increase of no less than 100% in the profit attributable to owners of the Company for the six months ended 30 September 2017 as compared to the six months ended 30 September 2016.