The board of directors of the Tongda Group Holdings Limited announced that based on the information currently available and the preliminary review of the Board of the unaudited consolidated management accounts of the Group for the six months ended 30 June 2017, it was estimated that the net profit attributable to the Shareholders for the six months ended 30 June 2017 would decrease by 20% to 30% as compared with that in the corresponding period in 2016. Although it was estimated that there will be approximately 9% to 13% increase in turnover; approximately 14% to 18% increase in gross profit; and approximately 1% increase in gross profit margin as compared with that in the corresponding period in 2016, the estimated decrease in the net profit attributable to the Shareholders was mainly due to the recognition of impairment of trade and other receivables of approximately HKD 53,819,000 and the increase in research and development expenses due to the preparation for the launch of new products.