The board of directors of Dynasty Fine Wines Group Ltd. informed the shareholders of the company and potential investors that it is anticipated the Group would continue to record an unaudited consolidated loss for the year ended 31 December 2016 as compared to the unaudited consolidated loss for the previous year. Based on the review of the preliminary estimate and assessment made with reference to the draft unaudited consolidated management accounts of the Group for the year ended 31 December 2016 currently available to the Board, such loss estimate is mainly attributable to: a decrease in revenue as a result of more cautious consuming sentiments amid the impact of economic slowdown in China; unsatisfactory sales performance in the nationwide supermarket channel which is one of main off-trade channels of the Group and impact of imported wines especially low to medium end imported wines which grab the market shares of domestic wines; and an increase in distribution costs as a percentage of revenue compared to previous year's due to continuous increase in investment in brand building, re-adjustment of sales and marketing channels in response to the market change and sustainable development of the company, which offset the gross profit. It is expected that the amount of the unaudited consolidated loss for the year ended 31 December 2016 would decrease by approximately 40% as compared with unaudited consolidated loss for the previous year, subject to potential adjustments and finalization that might be incurred during the audit. The decrease in the amount of loss was primarily due to decrease in provision for impairment in inventories during the year.