The board of directors of Sheng Ye Capital Limited informed the shareholders of the company and potential investors that, based on the unaudited consolidated management accounts of the Group for the six months ended 30 June 2017, it is expected that the Group may record a significant decrease in profit for the six months ended 30 June 2017 by approximately 50% as compared to that for the corresponding period in 2016. The expected decrease was primarily attributable to a delay in receiving of government subsidies from local government under the incentive policy for investment in factoring and other financial business in Tianjin city for the current year as compared to last year. The Group received government subsidies for the year 2016 in June 2016 but due to the time for clearing the administrative procedures by the government, the subsidies for the current year has not yet been received by the Group; and the non-recurring expenses in connection with the listing of the company recognised during the six months ended 30 June 2017.