South China Assets Holdings Limited provided earnings guidance for the year ended December 31, 2016. The board of directors of the company announced that based on the preliminary review of the unaudited consolidated management accounts of the group, the group expects to report a loss for the year ended December 31, 2016 as compared with net profit for the year ended December 31, 2015. The expected loss is mainly attributable to (i) one-off loss which arose from release of available-for-sale financials assets revaluation reserve upon conversion of redeemable convertible preference shares on behalf of the Shareholders into shares of South China Holdings Company Limited, a related company of the company and distributed as special dividend on October 3, 2016, as set out in the joint announcement of the company and SCHC dated July 29, 2016 and in the circular of the Company dated August 31, 2016; (ii) significant decrease of fair value gain on redemption option embedded in RCPS, and (iii) the expected effect from non-capitalization of administrative expenses and finance costs in properties under development after the disposal of subsidiaries as set out in the joint announcement of the company and SCHC dated October 7, 2015.