The board of directors of China Healthwise Holdings Limited informed the shareholders of the company and potential investors that, based on the information currently available to the Board, the group is expected to record a substantial loss attributable to the shareholders of the company for the year ended 31 March 2017 as compared to the same period in 2016. Such loss is mainly attributable to the decrease in gross profit and gross profit margin during the year as a result of the increase in production staff costs, depreciation charges, additional reworking costs, testing fees and sanitation costs in the toy business; the impairment loss on goodwill in relation to the commercial kitchen products business which was recognized during the year; and the impairment loss on certain long overdue trade and other receivables which the recoverability is considered remote.