On Time Logistics Holdings Limited is expected to record a very substantial decrease in revenue and net profit for the year ended 31 December 2016 as compared with that of the year ended 31 December 2015, and such decrease is mainly attributable to the following: the excess supply in air and sea cargo space during the first three quarters of 2016 led to aggressive competition in pricing within the industry. To maintain competitiveness, the Group was forced to lower its selling rates, and the Group's revenue directly suffered as a result; the peak season during the last quarter of 2016 was unexpectedly active, which led to a shortage in cargo space in the market. In these circumstances, although the Group could provide services to new customers who were willing to pay higher rates; as a matter of customer loyalty, the Group chose to prioritize the demands of its existing clients. Since such existing clients could only be charged at a slightly increased rate, the Group did not profit as much as it expected; the increase in staff costs and rental expenses due to the expansion of the sales team and ancillary and contract logistics services business respectively; the increase of investment in the e-commerce business, which has not yet contributed profit to the Group; the provision of doubtful debts and bad debts during the year ended 31 December 2016, in respect of outstanding trade receivables which amounted to approximately HKD 5.5 million as at 31 December 2016; the severance package paid to the stations managers who left the Group during the year ended 31 December 2016; and the provision of legal and professional fees during the year ended 31 December 2016 in respect of the Possible Offer.