The board of directors of Ta Yang Group Holdings Limited informed the shareholders of the company and potential investors that based on preliminary review of the unaudited consolidated management accounts of the group, the group is expected to record a loss for the year ended July 31, 2018. Such loss was attributable to a decrease of approximately 30% in sales orders of silicone rubber for the six months ended July 31, 2018 as compared with the six months ended January 31, 2018, and attributable to a decrease of the gross profit margin from approximately 27% in the First Half of the Financial Year to approximately 18.5% in the Second Half of the Financial Year due to the increase in raw material unit price.