Huiyin Smart Community Co., Ltd. announced that based on preliminary assessment of the unaudited consolidated management accounts of the Group, the Group is expected to record a decrease in the loss attributable to Shareholders for the year ended 31 December 2017 as compared with a significant net loss attributable to Shareholders for the year ended 31 December 2016. The change is mainly attributable to the following reasons: (i) the Group entered into an equity transfer agreement dated 16 December 2016, pursuant to which the Group sold and transferred all the equity interest held in a subsidiary, as a result, the Group suffered a loss of approximately RMB 90.2 million. (ii) the group reversed impairment provision of RMB 40.7 million for advance payment to a supplier for this Year, while the group made the relevant impairment provision for the Comparative Year; and (iii) expenses incurred by the Group for the Comparative Year from the share options granted to eligible participants due to the recruitment of a number of e-commerce professional employees based on the demand of human resources for the rapid expansion of the smart community e-commerce business.