The board of directors of Yunbo Digital Synergy Group Limited provided that, based on the preliminary review of the unaudited consolidated management accounts of the Company and its subsidiaries (collectively, the "Group"), it is expected that the quarterly results of the Group for the nine months ended 31 December 2016 will record a loss before income tax of not less than HKD 30,000,000 as compared to a profit before income tax of approximately HKD 9,296,000 for the corresponding period in 2015, mainly attributable to a decrease in revenue and gross profit due to the market being overcrowded with an overwhelming number of Ethernet-Passive Optical Network equipment and Gigabit-Passive Optical Network equipment suppliers which had greatly increased the level of competition, and written off of slow moving inventories of approximately HKD 10,000,000.