Casablanca Group Limited announced that based on the preliminary review of the unaudited consolidated management accounts of the Group for the year ended 31 December 2017, the Group is anticipated to record a significant increase in profit for the year ended 31 December 2017 as compared to that for the corresponding period in 2016. However, it is expected that the Group will record a substantial decrease in profit for the six months ended 31 December 2017 as compared to the significant profit recorded for the six months ended 30 June 2017. The reasons for the significant increase in profit for the six months ended 30 June 2017, as compared to the profit for the corresponding period in 2016, were mainly attributable to (1) the decrease in selling and distribution costs, especially the royalty payments in the People's Republic of China for a licensed brand terminated in 2016, the concessionaire commissions and related expenses for department store counters and the advertising and promotional expenses; (2) the decrease in staff cost with the PRC retail headquarters moved from Shenzhen to Huizhou in 2016 and none of expenses of share-based payments; (3) the absence of the provision for impairment loss on available-for-sale investment and convertible bond; and (4) the improvement in operations of subsidiaries in the PRC. In addition to these factors, the significant increase in profit for the year ended 31 December 2017 is also attributable to the increase in exchange gain as compared to the corresponding period in 2016.