Wisdom Sports Group announced that will strengthen its position in areas such as sports events production, live broadcast and new media video, and will keep creating high-quality media content and communication platform in sports media in 2016. With the implementation of transformation of the Group's business strategy, the group commenced to explore new marketing model in operation of sports events segment since the second half of 2015. Notwithstanding some of the revenue generated through such new marketing model could only be recognized as income in 2016 according to the relevant accounting standards, the revenue and gross profit of the Group's sports events segment increased respectively as compared to the corresponding period of the previous year 2015 is a year in which the Group focused on the strategic transformation and spared no effort to arrange the layout and the product upgrades in the area of sports industry and the extension of the industrial chain.

Therefore, the cost of operation and revenue have both increased relatively while the gross profit did not increase proportionately and was relatively modest. The Group believes that since the projects are still in incubation period, revenue could only grow gradually with the development of product maturity and brand influence. In light of the above, the net profit of the group for the year of 2015 had declined although the revenue and profit derived from the Group's sports events business increased.

Based on the unaudited financial information, the net profit attributable to the owners of the company for the year ended December 31, 2015 is expected to decrease by approximately 80% as compared with the same for the year ended December 31, 2014.