The board of directors of Ahsay Backup Software Development Company Limited informed the shareholders of the company and potential investors that, based on the preliminary review by the Board of the unaudited consolidated management accounts of the Group for the year ended 31 December 2016, the Group is expected to record a consolidated net loss for the year ended 31 December 2016 as compared to a consolidated net profit for the year ended 31 December 2015. The net loss of the Group was mainly due to (1) a decrease in revenue from the AhsayTM Backup Software as a result of increasing competition in backup software products; (2) an increase in staff costs and related expenses; (3) an increase in other expenses mainly from office rental expense and legal and professional fees; and (4) no profit was generated from discontinued operation for the year ended 31 December 2016.