The board of directors of China Environmental Resources Group Limited announced that the group is expected to record an increase in losses for the year ended June 30, 2016 as compared to the results for the corresponding period in 2015. This is the combined effects of net loss on fair value changes on financial assets at fair value through profit or loss amounting to approximately HKD 33 million; loss arising from changes in fair value less costs to sell of biological assets amounting to approximately of HKD 46 million; and general and administrative expenses amounting to approximately HKD 49 million due to the commencement of a new car distribution business during the year ended June 30, 2016.