The board of directors of the Pearl Oriental Oil Limited that, based on the preliminary review of the unaudited consolidated management accounts of the Group for the year ended 31 December 2017, the Group is expected to record a net loss of not less than approximately HKD 370 million for the year ended 31 December 2017, as compared with the net profit of approximately HKD 134 million for the year ended 31 December 2016. Such expected loss was mainly due to the increased finance costs and the impairment loss on carrying amount of the Group's intangible assets.