The board of directors of REXLot Holdings Limited announced that it is expected that the consolidated results of the group may record a net loss for the six months ended 30 June 2017 as compared with the net profit recorded for the six months ended 30 June 2016. Based on the information currently available, the Board believes that the expected loss for the six months ended 30 June 2017 is primarily attributable to the following factors: the decrease in revenue due to the continuing unfavorable operating environment of the PRC lottery market since the second half of 2016, especially in the scratch card market and paperless electronic lottery distribution market. As disclosed in the company's 2016 annual report, there was a decline in revenue for the financial year ended 31 December 2016 due to the slowdown of industry development. This slowdown has continued in the first half of 2017; the decrease in revenue resulting from the disposal of subsidiaries in February 2017. As disclosed in the Company's 2016 annual report, the revenue of the subsidiaries subject to the disposal was HKD 486,643,000 for the financial year ended 31 December 2016. The Group's total revenue (including that of the disposal group) was HKD 1,252,144,000 for that financial year; and the loss on disposal of subsidiaries. The preliminary assessment of the amount of the loss on disposal was recently provided to the Company. The Company is in the course of finalising the completion audit.