The board of directors of the Guangdong Tannery Limited announced the shareholders of the company and potential investors that based on the current estimates of the company' management, the consolidated net loss of the group for the nine months ended 30 September 2017 is expected to increase by over 80% as compared with the consolidated net loss of HKD 31.6 million for the corresponding period in 2016. Such increase in the consolidated net loss was mainly due to the following factors: a decrease in turnover of the Group brought about by the decrease in sales volume and selling price of footwear leather products as a result of the continually shrink in footwear leather market demand in general; a significant increase in gross loss mainly attributable to the decrease in selling price of products while increase in unit cost; and a substantial provision for inventories is made, while reversal of provision for inventories was made for the corresponding period of last year.