K & P International Holdings Limited informed the shareholders of the company and potential investors that, based on a preliminary review of the unaudited consolidated management accounts of the Group for the year ended 31 December 2018, the Group is expected to record a decrease in the consolidated profit attributable to owners of the company by around 85% for the year ended 31 December 2018, as compared to that for the year ended 31 December 2017. Such decrease in the consolidated profit attributable to owners of the company is primarily attributable to (i) a one-off staff compensation incurred in early 2018 for the closure of a factory in the Group's consumer electronic products business segment; and (ii) a one-off provision for staff compensation and writing off the relevant assets expected to be incurred for the closure of a factory in the Group's precision parts and components business segment in early 2019, because the relevant landlord is not agreeable to renew the relevant lease. The Group is expected to record an increase in the consolidated revenue for the year ended 31 December 2018 compared to that for the year ended 31 December 2017, and, had there not been the abovementioned one-off compensation and write off, the company estimates that it would have recorded an increase in the consolidated profit attributable to owners of the company for the year ended 31 December 2018 compared to that for the year ended 31 December 2017 due to an increase in sales and production efficiency.