The board of directors of Kaisa Health Group Holdings Limited announced that, based on the preliminary assessment of the unaudited management accounts of the Group and information currently available to the Board, the Group is expected to record a profit for the year ended 31 December 2017 of no more than HKD 5 million, comparing to the loss attributable to the owners of the Company for the year ended 31 December 2016 of approximately HKD 15.2 million and is due to turnaround from loss to profit attributable to owners of the Company from continuing operation which is the efforts of the management to increase the scale of operation (higher revenues as well as higher inputs to marketing and research activities) while partially offset by higher labor costs due to keen competition for skilled labor resources; and reduction in loss attributable to owners of the Company from discontinuing operation as the unprofitable business being disposed of or its scale reduced.