The board of directors of Century Ginwa Retail Holdings Limited announced that it is expected to record a loss attributable to equity shareholders of the Company of approximately RMB 352 million for the year ended 31 March 2017 as compared with the profit recorded for the fifteen months ended 31 March 2016. The Board considers that the aforesaid turnaround from profit to loss was mainly due to the provision for impairment of goodwill of approximately RMB 273 million. As such impairment is non-cash in nature, it will not have any material effect on the cash flow and the business operation of the Group; the loss on disposal of the property, plant and equipment resulting from the closure of the Xinjiang Youhao Store which will not have any impact on the business operation of the Group. The closure of the Xinjiang Youhao Store would better optimize the utilization of the Group's resource to focus on the core location and is expected to enhance the overall business performance of the Group in the future; and no valuation gain being recorded from the investment property during the current year, which is non-cash in nature. Save for the above non-recurring factors which have no material effect on the cash flow and the business operation of the Group, the business operation of the Group remains normal and effective.