Changhong Jiahua Holdings Limited provided earnings guidance for the year ended December 31, 2016. The board of directors of the company informed the shareholders of the company and potential investors that, based on the preliminary review of the group's unaudited management accounts for the twelve months ended 31 December 2016, the Group is expected to record an increase in its consolidated profit for the year ended 31 December 2016, and the expected profit attributable to owners of the parent for the year ended 31 December 2016 will not be less than 170% of the profit attributable to owners of the parent for the corresponding period of last year in the amount of HKD 131,749,000. The Board believes that the increase in the profit attributable to owners of the parent for the year ended 31 December 2016 was mainly attributable to (i) the relatively lower net profit attributable to equity holders of the Company for the year 2015 as compared to that for the year ended 31 December 2016 due to the provision made for the Group's discontinued operations relating to the misappropriation of assets by an ex-employee of Changhong Overseas Development Limited(Note) for the year 2015; and (ii) the improvement of operational efficiency as a result of the Group's further control over its operational costs.