The board of directors of Harmonicare Medical Holdings Limited provided that it is expected that the profit for the year ended 31 December 2017 (the current period) of the company will record approximately a 70% decrease as compared to the profit for the year ended 31 December 2016. Such expected decline is mainly attributable to, among other things, the following reasons: a decrease in the income and gross profit from some of hospitals as compared to those during the Corresponding Period; an exchange loss recorded during the current period due to the depreciating exchange rate of the USD and Hong Kong dollar against Renminbi, leading to a relatively large exchange loss from the retranslation of the deposits denominated in USD and Hong Kong dollar (at the rates prevailing at the end of the Current Period) generated from the proceeds of the company's initial public offering in July 2015 which remained unutilized (whereas an exchange gain was recorded in the Corresponding Period); and an increase in administrative expenses as compared to those of the Corresponding Period resulting from the mergers and acquisitions as well as construction of new hospitals during the current period.