The board of directors of Cosmo Lady (China) Holdings Company Limited informed the shareholders of the Company and potential investors that based on the Company's preliminary assessment of the unaudited consolidated management accounts of the Group for the year ended 31 December 2017, the Company expected that the profit for the Year would increase by approximately 28% to 35% as compared to that for the year ended 31 December 2016. Such increase in profit is mainly due to the implementation of a number of measures by the Company during the Year to tighten cost controls and with an aim to reduce costs and related expenses. In addition, although the total sales revenue declined slightly by about 6% in the first half of the Year when compared to the same period in 2016, it is expected that the revenue for the second half of the Year has improved by approximately 5% to 9% when compared to the same period in 2016, which also contributed to the increase in profit in the second half of the Year when compared to the same period in 2016.