The board of directors of Feiyu Technology International Company Ltd. reported that based on the preliminary assessment of the unaudited consolidated management accounts of the Group for the eleven months ended 30 November 2016 and the information currently available, it is anticipated that the factors which have caused the net loss for the six months ended 30 June 2016 will continue to be reflected in the annual results of the Group for the year ended 31 December 2016, and it is expected that the Group will record a net loss for the year ended 31 December 2016 under the International Financial Reporting Standards (IFRS) as compared to a net profit for the corresponding period of 2015. The expected net loss is primarily due to a substantial decrease in revenue due to: decrease in revenue of the Group's existing games as they reached mature stages of their product life cycles; delay in launching new key games due to the Group's strategic decision to invest additional development time and resources to enhance the quality of such games; and the newly launched games in 2016 underperformed.