KuangChi Science Limited provided consolidated earnings guidance for the year ended December 31, 2017. The board of directors of the company inform the shareholders and potential investors of the company that, based on the information currently available to the board and the preliminary assessment of the group's unaudited consolidated management accounts for the year ended 31 December 2017, the group expected that the profit attributable to owners of the company in fiscal year 2017 may range from approximately HKD 60 million to HKF 100 million as compared to the profit attributable to owners of the company of approximately HKD 664 million in the year ended 31 December 2016 and it may record a net loss ranging from approximately HKD 40 million to HKD 80 million for fiscal year 2017 as compared to a net profit of approximately HKD 596 million for fiscal year 2016. The decline in net profit for fiscal year 2017 is primarily attributable to: provisions for impairment loss of goodwill and other intangible asset related to the jetpack products business and development costs incurred by Martin Jetpack Aircraft Company Limited, a non-wholly owned subsidiary of the Company, the details of which have been disclosed in the interim condensed consolidated financial information of the Company for the six months ended 30 June 2017. No such provision was made in fiscal year 2016; a decrease in gain on change in fair value of the subscription right (a derivative that measured at fair value through profit or loss (FVTPL)) of Kuang-Chi Technologies Company Limited (formerly known as "Zhejiang Longsheng Automotive Parts Corporation Limited") for fiscal year 2017; a provision for impairment loss of carrying amount of investment in an associate and an available-for-sale investment in FY2017. Further financing is required to be obtained by the aforesaid investments to meet their development and business plan. After discussion and preliminary assessment by the Board on the financial position of these entities with reference to the latest available information, the company intends to take a prudent approach and make a full provision for impairment on the carrying amounts of these investments. The loans provided by the group to the aforesaid investments are also impaired in fiscal year 2017; and an increase in research and development expenditure in fiscal year 2017 for expansion of the business of the Group in fiscal year 2017.