The board of directors of the China Rongzhong Financial Holdings Company Limited that, based on the information currently available to the Board and its preliminary review of the unaudited consolidated management accounts of the Group for the six months ended 30 September 2017, the Group is expected to record a loss for the Reporting Period as compared to a profit of approximately HKD 39.1 million for the previous corresponding period ended 30 September 2016. The Board considers that the expected loss was mainly due to the increase in the provision for impairment losses on finance lease receivables of the Group. The Board emphasis that the above-mentioned provisions made is non-cash in nature and do not have any impact on the cash flow of the Group.