EVA Precision Industrial Holdings Limited announced earnings guidance for the year ended December 31, 2017. For the year, the company expects net profit to increase by not less than 140% as compared to the same period last year. The expected increase in net profit is mainly because: there was a reduction in employment expenses, as the Group has been automating its production lines and streamlining its workforce since 2016, which was mentioned in the company's 2017 interim report dated 28 August 2017; the Group's Vietnam industrial park was completed and incurred initial losses in 2016. As mentioned in the company's interim report dated 28 August 2017, the Group's Vietnam industrial park ramped up its production operations in 2017, and therefore started to generate profit; as mentioned in the company's 2016 annual report dated 27 March 2017, the Group's profit margin was lower and certain of its subsidiaries incurred losses in 2016, which increased the overall effective tax rate of the Group in 2016 as such losses were not eligible for offsetting the taxable profits generated by other profitable subsidiaries. As mentioned in the company's interim report dated 28 August 2017, this situation changed as profit margin improved in 2017, leading to a reduction in the effective tax rate of the Group; and there was a general reduction in various operating costs of the Group in 2017 as a result of the cost control measures adopted by the Group since 2016.