The board of directors of AV Concept Holdings Limited informed the shareholders of the company and potential investors that based on the Board's preliminary assessment of the unaudited consolidated management accounts of the Group for the year ended 31 March 2017 and the information currently available to the Group, the company is expected to record a very substantial year-on-year increase of not less than 100 times in net profit for the Relevant Period, when compared with the net profit of approximately HKD 2.1 million for the year ended 31 March 2016. Such increase in profit is mainly attributable to the following factors: (i) During the Relevant Period, when compared to that of the corresponding period in 2016, there was a significant increase of more than 25% in the company's share of profits and losses of joint ventures and associates; (ii) During the Relevant Period, when compared to that of the corresponding period in 2016, there was a significant decrease of the Group's administrative expenses and other net expenses through internal enhancement of cost control; (iii) During the Relevant Period, the Group recorded a net gain in fair value of equity investments at fair value through profit or loss of the company, with the realized gain on partial disposal of equity investments at fair value through profit or loss, as opposed to a fair value loss on equity investments at fair value through profit of loss in the corresponding period in 2016; and (iv) During the Relevant Period, the Group recorded a gain on deemed disposal of certain stakes in an associate of the Group, Me2on Co. Ltd. ("Me2on"), with the decrease in shareholding as a result of new shares being issued when Me2on was successfully listed on the Korea Securities Dealers Automated Quotations of the Korean Exchange on 10 October 2016.