China Digital Video Holdings Limited, together with its subsidiaries, has reported that the Group is expected to record a significant increase in its net profit for the nine months ended 30 September 2016 as compared to the correspondent period in 2015. Such significant increase was primarily attributable to the fair value gain on redeemable convertible preferred shares as a result of the completion of the global offering and the listing of shares of the Company on the Growth Enterprise Market of the Stock Exchange in June 2016. The adjusted net profit of the Group (excluding share-based compensation expense, fair value gain or loss on redeemable convertible preferred shares, expenses related to the Listing, gain on disposal of intangible assets and gain on disposal of a subsidiary) is also expected to increase significantly for the nine months ended 30 September 2016 as compared to the correspondent period in 2015. Such increase was mainly attributable to the increase in gross profit and the improvement of gross profit margin; and the decrease in the income tax expenses due to the recognition of preferential income tax rate of a subsidiary of the Company in nine months ended 30 September 2016.