The board of directors of the Kate China Holdings Limited announced the shareholders of the company that based on the preliminary review and analysis of the latest available unaudited management accounts of the group, the group is expected to report a significant net loss for the year ended 31 March 2016 as compared to the profit a year ago. The loss for the year ended 31 March 2016 was mainly due to a lower gross profit margin of the projects for the year and a loss on the valuation of the investment property.