The board of directors of Kaisa Group Holdings Ltd. informed the shareholders of the company and potential investors that, based on the preliminary assessment of the information currently available to the company and the unaudited management accounts of the group, it is expected the group will record a consolidated net profit for the year ended 31 December 2017 whereas the group recorded a consolidated net loss for the year ended 31 December 2016. The Board considers that the turnaround is mainly attributable to the increase in recognised revenue from the sale of properties of the Group during the relevant period, the substantial increase in the average selling price and the gross profit margin of such properties.