REXLot Holdings Limited informed the shareholders of the company and potential investors that based on a preliminary assessment by the company's management of the unaudited consolidated management accounts of the Group for the year ended 31 December 2016, it is expected that the consolidated results of the group may record a net loss for the year ended 31 December 2016 as compared with the net profit recorded for the year ended 31 December 2015. The Board believes that the expected loss for the year ended 31 December 2016 is primarily attributable to (i) the impairment loss on goodwill and other provisions related to the Group's operating units engaged in lottery distribution business including paperless lottery distribution in China due to challenging operating environment for the lottery industry in China; and (ii) the impairment loss on goodwill and intangible assets included in the interests in joint ventures due to the continuing slowing down of the scratch card market in China.