The board of directors of Great China Holdings Limited informed the shareholders of the company and potential investors that, based on a preliminary assessment of the latest available unaudited consolidated management accounts of the Group for the year ended 31 December 2018, the Group is expected to record a loss as compared to the profit for the year ended 31 December 2017. Based on the information available to the Board, the Board considers that such expected loss was mainly attributable to, among other things, the absence of increase in fair value of properties transferred from properties held for sales to the investment properties of approximately HKD 52 million; and the decrease in fair value of investment properties of approximately HKD 4 million for the year ended 31 December 2018 compared to the increase in fair value of investment properties of approximately HKD 8 million as recorded for the year ended 31 December 2017. The Board does not expect that there will be any material adverse effect on the operations of the Group arising from the decrease in fair value gain on investment properties.