The board of directors of Tungtex (Holdings) Company Limited informed the shareholders of the company and potential investors that, based on information currently available to the Board and subject to finalization of audit, the Group is expected to record an increase in loss attributable to the shareholders of the company for the financial year ended March 31, 2017 as compared to that for the last financial year ended March 31, 2016. Such increase in loss was mainly attributable to (i) the reduction in turnover which exerted negative impact on the economy of scale, (ii) the Group is currently carrying out assessment on provision for inventory impairment, the amount will be disclosed in the result announcement and the annual report of the company for the Financial Year, and (iii) the Group had ceased some operation units in overseas and Mainland China, resulting in an increase in compensation to employees.