Crocodile Garments Limited provided preliminary earnings guidance for the year ended July 31, 2018. The board of directors of the company expects to record a substantial increase in the audited annual consolidated profit attributable to owners of the Company for the Year, within the range of HKD 140 million to HKD 180 million, as compared to that of approximately HKD 88 million recorded in the corresponding year ended July 31, 2017. The expected increase in consolidated profit attributable to owners of the Company for the Year, based on unaudited consolidated management accounts, is primarily due to (i) a substantial increase in the revaluation gain of the Group's investment properties, (ii) the improving performance of the Group's garment business, which included a one-off gain on disposal of its entire equity interest in an indirect wholly-owned subsidiary of the Company established in the People's Republic of China after taking into account of the reclassification of exchange differences arisen on translation of the foreign operation and transaction costs as disclosed in the Company's announcement dated 24 August 2018; but partly offset by the diminution in the royalty income derived from the licensing of the brand "Crocodile" and the increase in the provision for doubtful debts due from licensees, and (iii) a one-off gain on disposal of one of its investment properties in Hong Kong as disclosed in the Company's announcement dated 19 January 2018 during the Year under review. Shareholders should note that the Group's financial results for the Year have not yet been finalised and is subject to audit by the Company's independent auditor.