The board of directors of Ever Harvest Group Holdings Limited informs the shareholders of the company and potential investors that based on a preliminary review on the unaudited consolidated results of the Group for the six months ended 30 June 2017 and information currently available to the Company, the Group is expected a substantial decrease in operating profit by approximately over 90% for the six months ended 30 June as compared to the same period in 2016. The Board believes that the aforesaid decrease in operating profit for the 2017 Interim Period was mainly attributable to the decrease in government grants in the 2017 Interim Period as compared to the same period in 2016; and the gross profit margin during the 2017 Interim Period was narrowed as compared to the same period in 2016 as a result of keener competition and the Group maintaining lower freight rates, and increased international fuel price since the second half of 2016.