Hengshi Mining Investments Limited provided consolidated earnings guidance for the six months ended June 30, 2016. Based on the company's preliminary review of the latest unaudited consolidated management accounts of the group, it is expected that the group's profit after tax for the six months ended June 30, 2016 is approximately RMB 16 million, representing a significant decline of approximately 80% as compared with the corresponding period of 2015. The main reasons for such decline are: (i) the average selling price of the iron ore concentrates for the six months ended June 30, 2016 declined by over 20% as compared with the corresponding period of 2015; and (ii) the output and sales volume of the group's iron ore concentrates for the six months ended June 30, 2016 decreased as compared with the corresponding period of 2015.