Golden Resources Development International Limited provided earnings guidance for the year ending 31 March, 2016. For the year, the company and potential investors that, based on the preliminary review of the unaudited consolidated management accounts of the Group, it is currently expected that the Group may record a net loss for the year ending 31 March, 2016, as compared to a net profit for last financial year. Such loss was mainly attributable to (i) the absence of one-off gain on the disposal of an associate of approximately HKD 35 million; (ii) the expected net unrealized loss and net realized loss on financial assets at fair value through profit or loss and derivative financial instruments under the current substantial downturn in the global investment markets; and (iii) the impairment loss on available-for-sale investments to the extent of approximately HKD 55 million, arising from the default of repayments by the investment funds in China.

Legal proceedings have been taken for the recovery of the above-mentioned investment funds.