REXLot Holdings Limited provided consolidated earnings guidance for the year ended December 31, 2017. The board of directors of the company announced that based on a preliminary assessment by the company's management of the unaudited consolidated management accounts of the group for the year ended December 31, 2017, it is expected that the group may record a substantial net loss for the year ended December 31, 2017. In addition to the factors disclosed on 21 August 2017 and the company's 2017 interim report, the overall operating environment in the PRC lottery market has remained challenging and the regulatory uncertainty in the PRC lottery market has continued in the second half of 2017. Such challenging operating environment and the prolonged uncertainty are likely to result in additional write-downs and provisions in the Group's lottery assets. The other factors as disclosed in the profit warning announcement dated 21 August 2017 and the company's 2017 interim report will continue to have an impact on the Group's results for the year ended 31 December 2017: The PRC lottery market has experienced an unfavorable operating environment since the second half of 2016, especially in the scratch card market and paperless lottery distribution market. This resulted in the decrease of revenue for the year ended 31 December 2017. The company completed the disposal of subsidiaries in February 2017. This resulted in a substantial decrease in the recorded revenue generated from the disposal group. The Group recorded a revenue of HKD 486,643,000 generated from the disposal group for the financial year ended 31 December 2016, compared to the unaudited revenue of HKD 35,830,000 generated from the disposal group for the financial year ended 31 December 2017. The Group also recorded an unaudited loss on disposal of subsidiaries of HKD 48,851,000 for the financial year ended 31 December 2017.

For the year ended December 31, 2017, the group expected to record a substantial amount of impairment loss on goodwill and other provisions related to the group's lottery business.