The board of directors of China Candy Holdings Limited informed the shareholders of the company and potential investors that, based on information currently available to the Board, it is expected that the Group will record a net loss for the year ended 31 December 2016 which is mainly due to the decrease in (i) revenue and gross profit due to weaker market sentiment and higher raw material costs and (ii) decrease in other income due to decrease in government subsidy for the year ended 31 December 2016 as compared with the corresponding period in 2015.