The board of directors of Bolina Holding Co., Ltd. informed the shareholders and potential investors of the company that based on the information currently available, the group expects to record a substantial loss for the financial year ended 31 December 2016 as compared to a profit for the financial year ended 31 December 2015. The Board considers that the substantial loss is mainly attributable to: the weak domestic demand for own branded products and the general shrinkage of ODM and OEM export market which significantly reduced production and sales volume and in turn impaired the overall gross margin; the group's efforts to assist distributors in key provinces and municipalities through subsidies for the purpose of enhancing distributors' operating capacity, intensifying sales channels, re-establishing shop image, stepping up brand promotion and consolidating brand advantage; and the one-off recognition of share option cost.