The board of directors of Orange Sky Golden Harvest Entertainment Holdings Limited informed the Shareholders the Company and potential investors that based on the preliminary assessment of the latest unaudited financial information, the Group is expected to suffer a net loss for the six months ended 30 June 2016 at approximately HKD 33.3 million as compared to a net profit of HKD 3.1 million for the corresponding period last year. The net loss is mainly due to finance costs of approximately HKD 31.4 million, an exchange loss of approximately HKD 4 million suffered as a result of the depreciation of the Renminbi; and a decrease in operating profit in the PRC, Hong Kong and Taiwan regions compared to the same period last year. The Group's box office income remains stable within all operating regions and is expected to record an operating profit of approximately HKD 2.3 million, compared to an operating profit of HKD 25.6 million for the same period last year and an operating loss of HKD 50.5 million for the second half of last year.