The board of directors of Arts Optical International Holdings Ltd. informed the shareholders of the company and potential investors that based on the company's preliminary review of the results of the Group for the ten months ended October 31, 2015, the group is expected to record a loss for the year ending December 31, 2015. The anticipated loss for the year ending December 31, 2015 is mainly attributable to: (i) the negative impact on the profitability of the Group arising from diseconomies of scale as the group's consolidated revenue decreased by 11% from HKD 1,325.8 million in the first ten months of 2014 to HKD 1,177.5 million in the first ten months of 2015; (ii) the significant increase in labour costs where the manufacturing facilities of the group are located, namely Shenzhen City, Heyuan City and Zhongshan City, where the statutory minimum wage increased by 12%, 20% and 15% respectively, since March 2015 for Shenzhen City and since May 2015 for Heyuan and Zhongshan Cities; (iii) the significant increase in other operating costs in Mainland China throughout 2015 as compared with 2014; (iv) additional costs and expenses incurred in 2015 as the Group accelerated the pace of its factory relocation project from October 2014 onwards with new buildings being constructed on its factory sites in Pingdi Town of Shenzhen City, Heyuan City and Zhongshan City, which resulted in higher depreciation charges of the buildings and leasehold improvement; (v) cost and expenses of HKD 13.9 million incurred in the first ten months of 2015 relating to the disposal of land and premises situated at Longguan District, Shenzhen City as announced by the Company on 19th August, 2014; and (vi) an impairment charge of USD 1.6 million (equivalent to approximately HKD 12.4 million) on the loan granted to a corporate customer of the Group due to uncertainty of its collectability.