Kingmaker Footwear Holdings Limited provided earnings guidance for the year ended March 31, 2018. The board of directors of the company announced that based on the preliminary review of the unaudited consolidated management accounts of the Group, the Group is expected to record a profit attributable to equity holders of the company of not less than HKD 250 million for the year ended March 31, 2018, representing a significant increase as compared to the year ended March 31, 2017. This is principally attributable to: a non-recurring profit of approximately HKD 174 million from the net gain on disposal of Kingmaker Footwear (Zhong Shan) Co. Ltd., which was recognised and reflected in the interim results of the Group for the six months ended September 30, 2017; and an overprovision in prior years' income taxes which is still under review by the company. Due to the above reasons and based on the unaudited consolidated management accounts of the Group, the Group's revenue attributable to its core business of manufacturing and sale of footwear products is expected to decrease by approximately 35% for the year as foreshadowed in the Interim Report of the Company, with recurring profit expected to decrease as a result. Based on the information currently available to the Group, apart from the macroeconomic reason of a slowdown in the global economy and retail sales in the US and Europe, such decreases are mainly attributable to: additional costs incurred and associated with the conversion of traditional production lines into "concept-lines" with an aim to promote efficiency, lean manufacturing and process automation; decrease in the overall manufacturing capacity of the Group; re-evaluation of the business model, client and product mix of the Group so as to shift its focus onto products with higher profit margins and to achieve higher profit margin in the long run; and increase in share of losses of associates of the Company which are also engaged in the manufacturing of footwear products.