The board of directors of Digital China Holdings Limited announced that based on the Board's preliminary review of the unaudited consolidated management accounts of the Company and its subsidiaries for the twelve months ended 31 December 2016 it is expected that the profit attributable to equity holders of the Group for the Period would be in the range of approximately HKD 370 million to HKD 410 million. The profit attributable to equity holders for the Period would include a profit from a discontinued operation of approximately HKD 560 million realized from the disposed traditional distribution businesses by the Company during the Period and a loss of approximately HKD 150 million to HKD 190 million incurred from the continuing operations during the Period. With regard to the continuing operations during the Period, the gross profit was increased by approximately HKD 295 million as compared to the corresponding period of 2015, but the expenses/loss were substantially increased as compared to the corresponding period of 2015, mainly due to an increased expenses of approximately HKD 350 million resulting from the increase in the Group's staff members and the expenses incurred in areas such as research and development, marketing and human resources for the continuing operations, due to the need of promoting the Company's strategic development, the increases of loan interest rates and the size of loan facilities resulting in an increase of finance costs of approximately HKD 125 million, the issue of new shares under the management subscription scheme incurring an increase of approximately HKD 50 million of share-based expenses (a non-cash item) and the dilution of the Company's shareholding in an associate resulting in a negative impact on profits of approximately HKD 70 million.