Morris Holdings Limited provided earnings guidance for the year ended December 31, 2018 and six months ended June 30, 2019. The board of directors, based on the unaudited consolidated management accounts for the year ended December 31, 2018 of the Group and the information currently available to the Company, the Group is expected to record a decline by more than 40% in the consolidated net profit for the year ended December 31, 2018 as compared with the corresponding period last year. Such significant decrease in the consolidated net profit is primarily due to the additional tariff levied on export products; the additional costs in expanding the sales network of the Company; and the finance cost arisen from the increased debt level during the year.

In addition, the management of the Company expects that there will be a significant drop in the Group's profits for the six month ended 30 June 2019 as compared with the corresponding period last year, which is mainly attributable to a decline in sales revenue of the Group as a result of the continuing US-China trade tensions that have dampened consumer sentiment and continuing uncertainties in the international trade environment. The Company will adopt conservative strategies in operating its business under such unfavourable conditions.

The Board announced that with effect from 2 July 2019 the address of the Company's head office and principal place of business in Hong Kong has changed to: Unit 2001, 20/F, Citicorp Centre, 18 Whitfield Road, Causeway Bay, Hong Kong.