The board of directors of Great China Holdings Limited informed the shareholders of the company and potential investors that a 10-year leasing contract relating to seven properties located in Shanghai, the People's Republic of China with effect from 1 November 2017 had been entered into by the group with an independent third party. The said seven properties were previously measured at the lower of cost and net realisable value and were now reclassified as investment properties and measured at fair value according to the Hong Kong Accounting Standards. As such, the group is expected to record a significant increase in profit for the year ending 31 December 2017, representing an increase of more than 100% as compared with the profit recorded by the group's continuing operation for the year ended 31 December 2016, as a substantial increase in fair value of investment properties will be recognised due to the abovementioned reclassification.