Odella Leather Holdings Limited announced that after preliminary assessment on the unaudited consolidated management accounts of the Group for the nine months ended 31 March 2016, the board of directors announced that it is estimated that the revenue and gross profit of the Group for the nine months and three months ended 31 March 2016 would be decreased significantly as compared to those of the corresponding periods in 2015 as a result of the sluggish luxury retail market and global macroeconomic downturn. In such connection, the revenue and gross profit for the nine months and three months ended 31 March 2016 is expected to drop by more than 30% and 40%, respectively, as compared to those of the corresponding periods in 2015. The Group also estimates that there was an increase in administrative expenses of over 10% for the nine months and three months ended 31 March 2016 as compared to those of the corresponding periods in 2015 (mainly due to the increase in cost for business development and increase in legal and professional fees subsequent to the listing of the Company's shares on GEM).

The decrease in gross profit and increase in an administrative expenses resulted in significant drop in operating profit as comparing to the operating profit (before taking into account of the listing expenses) in the corresponding periods in 2015. However, the operating profit in the corresponding periods in 2015 were off-set by the one-off listing expense which resulted in a net loss in the corresponding periods in 2015. Despite the drop in profit, the Group still estimates to have profit before tax for the nine months and three months ended 31 March 2016.