The board of directors of New Ray Medicine International Holding Limited inform the shareholders of the company and potential investors that, based on a preliminary review and analysis of the latest available unaudited consolidated management accounts of the company, it is expected that the Group will record a net loss for the year ended 31 December 2016 as compared with a net profit recorded by the Group for the year ended 31 December 2015 of approximately HKD 14.8 million. Such expected loss was primarily attributable to the following factors: the decrease in the revenue of the Group for the fiscal year 2016 as compared with that for fiscal year 2015 due to the decrease in revenue as a result of the cessation of sales of the Group's products with relatively low gross profit margin after the price cut for drugs in the public hospitals drug procurement list in the third quarter of 2015 as imposed by the several city governments in Zhejiang; the general decrease in the gross profit margin and thus the gross profit of the Group for the fiscal year 2016 as compared with that for fiscal year 2015 due to the (i) price cut for drugs in the public hospitals drug procurement list in the third quarter of 2015 as imposed by the several city governments in Zhejiang and (ii) increase in expenses to obtain an injection drug's exclusive distribution right and increase in amortisation expenses on the trademark of an injection drug; and the realized fair value losses and impairment losses of the Group's available-for-sale investments of approximately HKD 2.9 million and HKD 18.5 million for the fiscal year 2016 respectively, as a result of the volatile stock market in Hong Kong during the fiscal year 2016. The realized fair value losses and impairment losses of the Group's available-for-sale investments of approximately HKD 1.1 million and HKD 10.7 million respectively were recorded for the fiscal year 2015.