The board of directors of Next Digital Limited informed the shareholders of the company and potential investors that based on the financial information currently available, the Group expects to record an increase in loss of approximately 21.0% for the year ended 31 March 2018 as compared to a loss for the last year. Such an increase in loss for the year ended 31 March 2018 was mainly attributable to: (i) Poor market sentiment and cautious advertisement spending driven by slow economic growth in Hong Kong and Taiwan during the year under review, which led to a decline in advertising spending together with keen global competition of online advertising; (ii) Drop in circulation income of the Group's publications due to readers' preference of free online media over printed properties; (iii) The expenses incurred for the Group's restructuring during the year under review, including the payment in lieu of notice amounting to HKD 21.9 million for layoff of the relevant employees of the Group; and (iv) Based on the latest valuation report of the Group's mastheads and publishing rights in respect of Apple Daily the year ended 31 March 2018, the recoverable amount of the masthead and publishing right of Apple Daily is less than its carrying amount and therefore, an impairment in the amount of approximately HKD 159.9 million has been made for the year.