Pacific Textiles Holdings Limited provided preliminary earnings guidance for the year ended March 31, 2018. The board of directors of the company announced that based on the preliminary assessment of the currently available information, the Board expects that the profit attributable to equity holders of the company will be decreased from approximate HKD 976 million for the year ended 31 March 2017 to approximate HKD 731 million for the year ended 31 March 2018 (a decrease of approximate 25%). The downturn is mainly due to various factors, including but not limited to the absence of gain on reversal of provision for impairment of interest in an associate as in the previous year (amounted to approximate HKD 46.8 million); higher fixed cost absorption and expenses incurred to meet customer claims arising from the suspension of production of the Vietnam factory during the financial year ended 31 March 2018, which amounted to around HKD 100 million; the inflation of production costs, such as yarn, chemicals, labor, coal as well as appreciation of RMB during the financial year ended 31 March 2018.