The board of directors of Huiyin Smart Community Co., Ltd. informed the shareholders of the company and potential investors that based on preliminary assessment of the unaudited consolidated management accounts of the Group, the Group is expected to record a loss for the year ended 31 December 2015 as compared to the net profit for the preceding year. The change is mainly attributable to the following reasons: the provisions made by the Group in respect of the amounts due from suppliers if any, because the Group gives up some traditional household appliances distribution rights, which occupy major cash resource, for transition to smart community e-commerce business and uses the relevant resources to develop the new business of smart community e-commerce; and expenses incurred by the Group from the share options granted to eligible participants due to the recruitment of many e-commerce professional employees based on the demand of human resources for the rapid expansion of the smart community e-commerce business.