China Jicheng Holdings Limited provides earnings guidance for the year ended December 31, 2016. Based on the information currently available to the group, the board of directors of the company expects to record a substantial decrease in profit for the year ended 31 December 2016 when compared with the profit of approximately RMB 25.2 million for the year ended 31 December 2015. The material decline in the financial performance of the group were mainly due to a decrease in revenue brought about by the decrease in sales volume affected by poor market situation; an increase in the cost of direct materials leading to significant drop in gross profit; and the non-cash provision for the obsolete, damaged and slow moving inventories.