Polyfair Holdings Limited announced the shareholders of the company and potential investors that based on preliminary assessment of the unaudited consolidated management accounts of the Group for the nine months ended 31 December 2018, the Group is expected to record a net loss of approximately HKD 0.9 million for the nine months ended 31 December 2018 as compared to a net profit of approximately HKD 7.3 million for the corresponding period in 2017. The Board considers that the turnaround from profit to loss was mainly due to (i) the decrease in revenue as two sizable projects were substantially completed while substantial portion of revenue from these projects has been recognized prior to the nine months ended 31 December 2018 and two of current projects were delayed due to the design change of developer and delayed progress of main contractor; (ii) the gross profit margin of the projects for the nine months ended 31 December 2018 were relatively lower than the projects for the nine months ended 31 December 2017 as a result of the increasing competition from other contractors seeking to tender projects at lower price; (iii) additional subcontracting costs incurred when carrying out certain projects; (iv) increase in administrative expenses; and (v) increase in finance costs.