Yue Yuen Industrial (Holdings) Limited provided consolidated earnings guidance for the three months ended March 31, 2018. The board of directors of the Company informed the shareholders of the Company and potential investors that based on the preliminary review of the unaudited consolidated financial statements of the Group for the three months ended 31 March 2018 (the "Period"), the Group is expected to record a decrease of around 20% - 25% in its profit for the period when compared to that for the corresponding three-month period in 2017. Based on the information currently available to the Group, the decrease in profit for the period is mainly attributable to various factors, including the following: A non-recurring profit totaling $19.2 million was recognized in the first three-month period in 2017, which included approximately $9.4 million of gain due to fair value changes on derivative financial instruments and $9.8 million of gain on disposal of associates. The Board expects such non-recurring gain to materially reduce during the Period. Increase in finance costs by approximately $8.6 million during the period as compared to the same period in 2017, attributable from increased borrowing to improve the Group's capital structure. Manufacturing revenue during the Period decreased by around 6.7% due to unfavourable fluctuations in customer orders, together with unfavourable product mix which resulted in operating deleveraging effects. These negatively impacted gross profit margin for the manufacturing business. During the Period, the Group's selling and distribution expenses as a percentage to overall revenue increased when compared to the same period of last year, alongside with the growth of revenue contribution from retail and distribution business.