The board of directors of BAIOO Family Interactive Limited informed the shareholders of the company and potential investors that, based on the preliminary review of the latest available unaudited management accounts of the Group, the Group is expected to record a net loss for the six months ended 30 June 2016 as compared to a net profit recorded for the corresponding period in 2015 under International Financial Reporting Standards ("IFRS"). The expected net loss for the six months ended 30 June 2016 is mainly attributed to (i) the increased investment by the Group in the research and development of new product areas including mobile entertainment and e-commerce catering to interactive family needs which caused an increase in the Group's expenses; (ii) a one-time expense arising from the relocation to a new rental office space and the concurrent rental expenses for the original and new rental office spaces for the six months ended 30 June 2016 during the relocation which is not expected to recur.