The board of directors of the Shenglong Splendecor International Limited announced that based on the preliminary assessment of the latest unaudited consolidated management accounts of the Group for the three months ended 31 March 2018 and the information currently available to the Board, the Group expects to record a significant decrease in the profit attributable to owners of the Company for the First Quarter as compared with the three months ended 31 March 2017 despite an increase in revenue. Such decrease is primarily attributable to an increase in the costs for the Group's major raw materials, in particular the base paper for production of decorative paper and melamine impregnated paper. As a result of the increase in purchase costs of certain major raw materials, it lowered the Group's gross profit margin and reduced the consolidated net profit of the Group despite an increase in revenue.