China Opto Holdings Limited provided consolidated earnings guidance for the year ended 31 December 2016. The board of directors of the company announced to the shareholders and potential investors of the company that, based on the preliminary review of the group's unaudited consolidated management accounts for the year ended 31 December 2016 and the information currently available, the group expects to record a substantial loss of approximately HKD 1 billion for the financial year ended 31 December 2016, as compared with a profit recorded for the financial year ended 31 December 2015. The substantial loss is primarily attributable to the following: a loss from the securities trading and investments of approximately HKD 361 million due to the volatile equity market performance; a loss of approximately HKD 56 million from the subsidiaries engaging in apparel products business, which had been disposed of before the financial year ended 31 December 2016, due to weak retail market spending; a provision for impairment losses on unlisted investments due to a decrease in assets value of the unlisted investments; and a provision for impairment of goodwill on newly acquired subsidiaries principally engaged in provision for QR codes packaging due to a decrease in sale orders on QR codes packaging products.