The board of directors of Orient Victory China Holdings Limited informed shareholders of the company and potential investors that, based on a preliminary review of the unaudited consolidated management accounts of the group for the year ended 31 December 2016 and information currently available to the Board, the group is expected to record a substantial loss for the year as compared to a net profit recorded for the corresponding period of last year. The loss is primarily attributable to the share of the loss for the year of an associate of the group which is expected to record a significant asset impairment for the year; and the increase in the amortised finance charge in connection with the interest free loans from a related party and a third party during the year.