The board of directors of First Shanghai Investments Limited announced that shareholders and potential investors that the Group is expected to record a loss attributable to shareholders of the company for the six months ended 30 June 2016, as compared with the profit attributable to shareholders of the company for the corresponding period in 2015. Such expected loss is mainly attributable to (1) recognition of approximately HKD 119 million accounting loss on disposal of a listed associated company, China Assets (Holdings) Limited; (2) decrease in profit from stock brokerage business with decrease in market turnover by approximately 71% from that of the corresponding period in 2015; and (3) decrease in trading profit of its investment portfolio by approximately 92% from that of the corresponding period in 2015. The impact was partially offset by the decrease in depreciation charge of hotel facilities in Wuxi City, Jiangsu Province, Mainland China. The Directors would like to clarify that although the accounting loss on the Disposal of approximately HKD 119 million would be recognised in the consolidated income statement of the Group for the six months ended 30 June 2016, the retained earnings would be increased by almost the same amount upon reclassifying the negative goodwill to retained earnings, so the resulting balance of retained earnings and total equity would not be adversely affected. In fact, such accounting loss is non-cash in nature and would not have any material adverse impact on the current and future cash flows and business operations of the Group.