The board of directors of HKC (Holdings) Limited informed the shareholders of the company and potential investors that based on the unaudited consolidated accounts of the Group for the year ended 31 December 2015, the Group is expected to record a larger loss attributable to equity holders for the year ended 31 December 2015, as contrasted with the audited consolidated net loss for the previous corresponding year ended 31 December 2014. The net loss attributable to equity holders for the year ended 31 December 2015 would increase by about 470% compared with the net loss recorded for the corresponding year ended 31 December 2014. The Group's loss is largely due to the negative impact from: a decrease in the fair value of the Group's investment properties under construction in Shanghai, which is made based on the pre-leasing market studies indicating lease rates at lower than initially expected level in view of an expected oversupply in the Hongkou District; and an impairment loss made on the Group's property project in Shenyang, which is made in view of the lower than expected prices as a result of oversupply in property market.