Ka Shui International Holdings Limited provided earnings guidance for the year ended December 31, 2017. The Group is expected to record an operating loss for the year ended 31 December 2017 as compared with an operating profit recorded by the Group for the year ended 31 December 2016. Such operating loss for the year ended 31 December 2017 is due to a slight decrease in revenue (which was primarily due to the less favourable market conditions in the notebook computer industry, which affected the Group's magnesium alloy die casting business) and an increase in the cost of sales (which was primarily due to an increase in the cost of raw materials). The Group's operating profit was also adversely affected by (i) the appreciation of the Renminbi against the United States dollar, which affected the Group's profitability; and (ii) the general and administration expenses incurred in the overall integration of the Group's production facilities.