Hengshi Mining Investments Limited provided earnings guidance for the six months ended June 30, 2016. For the period, the group expects that the Group's profit after tax for the six months ended 30 June 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: the average selling price of the iron ore concentrates for the six months ended 30 June 2016 declined by over 20% as compared with the corresponding period of 2015; and the output and sales volume of the Group's iron ore concentrates for the six months ended 30 June 2016 decreased as compared with the corresponding period of 2015. Upon further review by the Company 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 30 June 2016 is approximately RMB 7 million, representing a significant decline of approximately 91% as compared with the corresponding period of 2015. The main reasons for such change are attributable to necessary adjustments upon further calculations in relation to the provision for doubtful debts, accrual of income tax expenses and professional fees incurred for financing activities.