The board of directors of InvesTech Holdings Limited informed the shareholders of the Company and potential investors that, based on a preliminary review of the unaudited and unreviewed management accounts of the Group for the six months ended 30 June 2017 and assessment of the information currently available to the Board, the Group is expected to record a net loss for the Period. The loss-making position during the Period was primarily attributable to (i) the interest expense of approximately RMB 11.7 million incurred on the coupon notes issued by the Group pursuant to the placing agreements dated 1 December 2016 and 23 February 2017 and (ii) the loss arising from the disposal and change on fair value of listed held-for-trading securities investments of approximately RMB 3.7 million, which is partially off-set by the gain on disposal of an available-for-sales investment of approximately RMB 2.7 million.