The board of directors of Synertone Communication Corporation announced that, based on the information currently available and a preliminary assessment on the latest unaudited consolidated management accounts of the Group for the 11 months ended 29 February 2016, the Group is expected to record a substantial loss for the year ended 31 March 2016, which will be materially larger compared to the net loss for the six months ended 30 September 2015, whereas the Group was recorded a profit of approximately HKD 33.7 million for the year ended 31 March 2015. The deteriorated financial performance of the company was primarily attributable to the suspension on and adjustment made to certain business markets and opportunities in light of comprehensive technology upgrade measures for the satellite resources network by the Group. The aforesaid situation continued in the second half of relevant financial year together with the instability in the domestic economy and therefore, it is expected to record a significant decline in the revenue from Synertone satellite system and other business segments, as compared to the corresponding period last year.

Hence, the Group is expected to record a substantial loss for the year ended 31 March 2016 as compared to a profit for the year ended 31 March 2015.