Quali-Smart Holdings Limited provided consolidated earnings guidance for the year ended December 31, 2015. For the year, the company expects net loss of the Group for the year ended 31 March 2016 is expected to increase substantially as compared to the corresponding period ended 31 March 2015. The group is expected to record an increase in consolidated net loss of about HKD 10.0 million for the Current Period arising from (i) consolidating the results of Pulse MediaTech Limited and its subsidiaries (the "PMT Group"), the information technology division of the Group, as compared with the Previous Period; and (ii) an increase in amortisation of intangible assets arising from the PMT Group for the Current Period as compared with the Previous Period.

These items impacted the financial performance of the Group for the entire year in the Current Period, as opposed to an impact of only about three and a half months in the Previous Period; the Company completed the acquisition of Crosby Securities Limited and Crosby Asset Management (Hong Kong) Limited (together, the "Crosby Group") in November 2015 and started consolidating their results since the date of completion. Based on currently available information, the Group is expected to record additional consolidated net loss of about HKD 13.0 million for the year ended 31 March 2016 arising from consolidating the results of the Crosby Group since the completion of its acquisition by the Company; the Group is also expected to record (i) an increase in finance costs of about HKD 4.3 million arising from the convertible notes and promissory notes issued for the acquisition of the PMT Group and the Crosby Group and (ii) an increase in staff costs arising from the equity settled share-based payment expenses related to the grant of share options of about HKD 10.0 million, amongst others; and the above increase in losses or expenses of the Group for the Current Year is expected to be mitigated by the recovery of a bad debt of about HKD 7.0 million and a decrease in administrative expenses of the toy manufacturing business of the Group of about HKD 12.0 million as there was a provision for bad debt in the Previous Period which is absent in the Current Period. The toy manufacturing business of the Group is expected to be profitable in the Current Period.