The board of directors of Greenheart Group Limited informed the shareholders of the Company and potential investors that, based on the information currently available, the Group expects to record a significant decrease in its consolidated net loss for the six months period ended 30 June 2016 as compared to that for the six months period ended 30 June 2015. Such expected decrease in net loss is primarily attributable to, among other things, the substantial non-cash fair value gain on the plantation forest assets located in New Zealand. According to the draft valuation report prepared by an independent valuer, it is expected that a fair value gain on plantation assets of HKD 45.9 million will be recorded for the Period, while a fair value loss of HKD 86.9 million was recorded during the same period of last year. The deferred tax arising from the above-mentioned fair value gain will be a deferred tax expense of HKD 12.8 million for the Period (2015: a deferred tax credit of HKD 24.3 million). The Draft Valuation Report was prepared according to industry practice, consistently applied and placed significant weight on the spot market price and return movement during the valuation period. The increase of the fair value is mainly due to the increase of the near term forecast New Zealand Radiata Pine unit log price at wharf gate.