The board of directors of Capxon International Electronic Company Limited announced that the group is expected to record a loss not exceeding RMB 3,000,000 for the year ended December 31, 2017 as compared to a profit of approximately RMB 13,714,000 for the corresponding period in 2016. Decline is mainly caused by impairment losses made on certain assets of a subsidiary of the company which closed down its production plant located in mainland China during the year ended December 31, 2017.