The board of directors of K&P International Holdings Ltd. informed the shareholders of the Company that, based on a preliminary evaluation of the unaudited consolidated management accounts of the Group, which have not been audited or reviewed by the Company's auditors, the Group is expected to record a significant decrease in the consolidated profit before tax for the year ended 31 December 2015 as compared to the same period in 2014. The said decrease is mainly due to the increase in costs of production of the Group's consumer electronic products and the decrease in number of orders placed by the Group's customers for its consumer electronic products in 2015.