The board of directors of InvesTech Holdings Limited has reported earnings guidance for the year ended 31 December 2016. The Group is expected to record a net loss for the Period as compared with the net profit recorded for the year ended 31 December 2015. The loss-making position during the Period was attributable to the significant decrease in revenue as a result of the uncertainty of worldwide economy and the continuous intense competition in the telecommunications industry and the downsizing of the operation of the traditional telecommunications products and services (the Traditional Telecommunication Business) by the Group due to shifting of its business focus towards the development of network communication business and the mobile office automation software business (collectively, the Network System Integration Business); the decrease in gross profit due to the amortization adjustment included in cost of sales of approximately RMB 29.8 million arising from amortization of technology and unfinished backlog orders created upon completion of acquisition of Fortune Grace Management Limited, which through its wholly owned subsidiary, is principally engaged in the Network System Integration Business, in November 2015; and the significant increase in the selling and distribution expenses arising from the pro-active development and promotion of the Network System Integration Business upon completion of acquisition of Fortune Grace Management Limited in November 2015.