The Board informed the shareholders of Shirble Department Store Holdings (China) Limited and prospective investors of the shares of the company that the net profit attributable to owners of the Company for the year ended 31 December 2017 would decrease by 20% to 25%, as compared with the same for the year ended 31 December 2016, primarily due to the following reasons: unrealized exchange loss of approximately RMB 21.5 million due to the change of certain bank deposit of the Group from RMB into US dollars; the decrease in recognition of the deferred income in respect of unused pre-paid gift cards issued by the Group of approximately RMB 4.8 million; slight decreases in the sales revenue generated from certain department stores of the Group in the PRC because of a combination of factors, such as the increase popularity of online sales in the PRC and unexpected changes in consumers' preference; and decrease in net finance income as a result of cash deposit used for acquisition of properties in Shenzhen and Changsha in 2017 of RMB 23.7 million.