Kingsoft Corporation Limited provided consolidated earnings guidance for the year ended December 31, 2017. The company expected that the consolidated net profits of the group would significantly increase for the year ended 31 December 2017 as compared with that for the year ended 31 December 2016 primarily due to the Delegation. The unaudited deemed disposal gain as a result of the Delegation to be recognized in the group's consolidated statement of profit or loss for the year ended 31 December 2017 is approximately RMB 2 billion.