The board of directors of HL Technology Group Limited announced that the group is expected to record a decrease in gross profit and net loss for the six months ended 30 June 2016 as compared with the gross profit and net profit recorded for the six months ended 30 June 2015 respectively. The loss-making position during the period was attributable to the significant decrease in revenue and gross profit as a result of instability of economy and the continuous intense competition in the telecommunications industry; and the amortization charge of approximately RMB 18 million arising from amortization of intangible assets created upon completion of acquisition of Fortune Grace Management Limited in previous year.