Dragon Rise Group Holdings Limited provided earnings guidance for the six months ended September 30, 2018. The board of directors of the company announced the shareholders of the company and potential investors that, based on the information available to the board, it is expected that there would be a significant deterioration in the operating results of the Group by a decrease of approximately 70% to 80% in net profit for the six months ended 30 September 2018 as compared to the six months ended 30 September 2017. Such result was primarily attributable to substantial decrease in contracting revenue due to the delay in commencement of new projects being awarded to the Group and substantial completion of the projects on hand in the Prior Period; decrease in gross profit margin for the Group's business as a result of an increase in overall construction costs; and keen competition in the market for new projects.