Boer Power Holdings Limited board of directors of the company expects to record a substantial decrease in net profit for the year ended 31 December 2016 as compared to the same period in 2015, and it is very probable that a net loss may be incurred. Based on the unaudited consolidated management accounts of the company and the data currently available to the Board, the substantial decrease in the Group's net profit is mainly attributable to the fact that the Company's management shifted the operation and management focus to reforming the factoring business and restructuring the corporate internal management, and the Company put efforts to improve the Group's asset and liabilities structure and cash flow level during the year of 2016. As the Group has adjusted the model of the factoring business, certain outstanding contract backlogs were cancelled or not completed as scheduled. The Group also adopted a conservative strategy for the entering into and execution of new orders in the year of 2016, resulting in a relatively slow progress in business. Moreover, the Group may make a provision for bad debts of the trade receivables during the year of 2016 due to increased age of trade receivables upon the completion of audit of the consolidated management accounts of the Group. The above factors resulted in a substantial decrease in the revenue and net profit of the year of 2016.