The Board of China Harmony New Energy Auto Holding Limited announced that, based on the Group's preliminary review of the unaudited consolidated management accounts of the Group for the year ended 31 December 2016, the Group is expected to record a consolidated net loss attributable to Shareholders for the year ended 31 December 2016, whereas the Group recorded a consolidated net profit attributable to Shareholders for the year ended 31 December 2015 of approximately RMB 563.4 million. The Board considers that the Expected Net Loss for the year ended 31 December 2016 is primarily attributable to: the Group's independent after-sales services business is still at the initial development stage, upfront costs were incurred due to rapid network expansion; impairment loss arising from investments and acquisition by the Group; and the Company's sale of aged stock at substantial discounts during the year.