The board of directors of the EVA Precision Industrial Holdings Ltd. informed that the shareholders of the company and potential investors that based on the unaudited management accounts of the group for the five months ended 31 May 2016 and the unaudited financial information relating to June 2016 available as at the date of this announcement, the net profit of the group for the six months ending 30 June 2016 is expected to decrease by not less than 80% as compared to the corresponding period in 2015. The change is mainly due to the reduction in orders from customers in office automation equipment and consumer electronics sectors as a result of the lacklustre global and Chinese economies. In particular, a slowdown in product development activities of the customers resulted in a decrease in the revenue contribution from moulds production to total turnover of the Group which, in turn, had a negative impact on the overall gross profit margin as moulds are products of higher profit margin; despite various costs control measures implemented by the Group, the decrease in turnover led to declining economies of scale since certain costs were fixed; the decreases in net exchange gain and interest income; and the initial costs incurred on the group's new industrial park in Vietnam.