Wison Engineering Services Co. Ltd. provided unaudited consolidated earnings guidance for the six months ended June 30, 2018. For the period, the company expects to record a relatively significant decrease in revenue and profit after tax as compared to that for the corresponding period in 2017. The majority of the new projects obtained by the Group since the second half of 2017 were yet to enter the principal construction phase in the first half of 2018 while the projects obtained by the Group in previous years are approaching completion phases, respectively, leading to a significant drop in the revenue recognized for the six months ended 30 June 2018 (as compared with the corresponding period in 2017). Typically in energy engineering industry, the project execution cycle is generally more than one year and therefore the revenue recognized using the percentage of completion method fluctuates in light of factors such as the progress of completion of the projects and project costs arose during a certain reporting period. Generally in the early phase and the later phase of an energy engineering project, the proportion of cost is relatively small and therefore the proportion of revenue recognized is also relatively low. When a project enters the principal construction phase with large scale equipment installation and construction, a substantial amount of cost will be incurred and at the same time a relatively significant amount of revenue will be recognized. The non-seasonal characteristic and project execution cycle typical of the energy engineering industry lead to fluctuation in the Group's revenue, which may further result in a positive profit alert or profit warning. Moreover, due to increased staff costs resulting from the increase in technical and project execution staff members employed by the Group for its existing projects and new projects expected to be entered into by the Group; and increased expenses related to share options granted in November 2017, the Group's profit is expected to decline for the six months ended 30 June 2018 as compared to that for the corresponding period in 2017.