China Oilfield Services Limited board of directors announced that based on the preliminary review by the finance department of the company, net loss attributable to owners of the company as reported in accordance with HKFRS for the twelve months ended on 31 December 2016 will amount to approximately RMB 11,700,000,000. The company is of the view that such loss is mainly attributable to the following factors: in 2016, international crude oil price fell below $30 per barrel and has maintained in a slump, and the average WTI oil price of the year was only about $43 per barrel. The low oil price has caused international oil companies to substantially cut their capital expenditure in 2015 and 2016, and oilfield services industry has suffered substantial impact. As a result, the company's volumes of work and service prices of 2016 have declined with varying degrees. Meanwhile, the company has made provision for fixed assets, goodwill impairment and bad debt provision for account receivables. In addition, the company was affected by the seasonal factors of the fourth quarter. The aforesaid factors result in the estimate of net loss during this reporting period. Based on the operation conditions and the budgets of 2017, the board of directors announced the estimation on the volume of business and capital expenditure of the company for 2017. It is estimated that the capital expenditure of the company for 2017 will be approximately RMB 2,500 million and will be mainly used in construction projects in process.