The Board of Forgame Holdings Limited informed the Shareholders and potential investors that, based on the information currently available to the Board and the preliminary assessment of the Group’s unaudited consolidated management accounts for the four months ended 30 April 2016 (the Management Accounts), it is currently expected that the Group may record a net loss (excluding the expected investment loss) of between approximately RMB 56 million and RMB 66 million for the six months ending 30 June 2016 as compared to a net loss (excluding investment and impairment loss of approximately RMB 75 million) of approximately RMB 40 million for the six months ended 31 December 2015. Based on information currently available to the Company, such expected increase in net loss is primarily due to the expected (i) decrease in revenue as a result of an expected delay in the launching of certain game titles resulting from additional time required to enhance the quality of the games to maximize the games’ revenue potential; (ii) write-down of game license fees and prepayments to game developers after assessing the current and/or projected performance of related licensed games, given the rapidly changing game player preferences and/or time and energy required to further fine-tune and publish the games; and (iii) decrease in interest income due to recent interest rate cuts by the People’s Bank of China.