GR Properties Limited provided earnings guidance for the year ended 31 December 2017. Based on the management's preliminary assessment of the Group's unaudited consolidated management accounts, the consolidated net loss for the year ended 31 December 2017 is expected to be restated from approximately HKD 36.82 million to approximately HKD 65.36 million as a result of applying the principles of merger accounting, as prescribed in Hong Kong Accounting Guideline 5 "Merger Accounting for Common Control Combinations issued by Hong Kong Institute of Certified Public Accountants, as if the acquisition of the entire issued share capital of Wholly Express Limited (together with its subsidiaries collectively referred to as the "Acquired Group"), which was completed on 31 August 2017 and was accounted for as a business combination under common control, had occurred at the beginning of the earliest financial year presented. On this basis, the financial results of the Acquired Group were consolidated from 1 January 2016 in the preparation of the Group's consolidated financial statements for the year ended 31 December 2017. Under the principles of the AG5, the consolidated net loss for the year ended 31 December 2017 is expected to increase by approximately 70% as compared to the consolidated net loss for the year ended 31 December 2016 before the aforesaid restatement and decrease by approximately 5% as compared to the restated comparable figure for the year ended 31 December 2016. The Group's consolidated net loss for the year ended 31 December 2017 was mainly attributable to; the net loss generated from the Acquired Group which was mainly due to surrounding area of the property held by the Acquired Group located at Ronghua South Road, Economic-Technological Development Area, Beijing, the People's Republic of China is still under development. As disclosed in the Circular, the aforesaid surrounding area is estimated to be completed gradually from 2018 to 2022. Based on the unaudited management accounts of the Acquired Group for the year ended 31 December 2017, the net loss generated from Acquired Group was mainly arise from the depreciation of assets; and the recognition of fair value loss of the Group's investment property of Boundary House located in the United Kingdom, which is made based on a shorter lease term under the new lease agreements entered into between the Group and its tenants indicating lease rates at lower than initially expected level and an expected decrease in rental income generated by such investment property.