Kantone Holdings Limited provided earnings guidance for the year ended 30 June 2017. The board of directors announced that based on a preliminary review of the latest unaudited consolidated management accounts of the Group and other information currently available to the Board, it is expected that the Group may record a substantial loss for the year ended 30 June 2017. The Board believes that the expected loss for the year ended 30 June 2017 is primarily attributable to the writing down in value of the Group's inventories of cultural products as they were slow-moving during the year ended 30 June 2017, therefore their net present realisable value would fall below their cost.