The board of directors of Feiyu Technology International Company Ltd. announced that based on the preliminary assessment of the Group's latest unaudited consolidated management accounts, it is expected that the Group may record a net loss of approximately RMB 75 million to RMB 85 million for the six months ended 30 June 2016 under the International Financial Reporting Standards as compared to a net profit of RMB 92 million for the corresponding period of 2015. Without taking into account the share-based compensation of approximately RMB 80 million and amortisation of intangible assets recognised for acquisitions of approximately RMB 10 million, it is expected that the Group will record an adjusted net profit of approximately RMB 5 million to RMB 15 million for the six months ended 30 June 2016 under the non-IFRSs measures. The expected net loss is primarily due to the factors: substantial decrease in revenue; significant increase in administrative expenses and research and development (R&D); and a provision of investment impairment loss of approximately RMB5 million to be made for the six months ended 30 June 2016 for a minority stake investment in a company which engaged in design, production and distribution of network dramas.