China Ludao Technology Company Limited provided earnings guidance for the six months ended June 30, 2016. For the period, the company is expected to record a net profit as compared with a net loss for the corresponding period in 2015. The improvement of the Group's financial performance was mainly due to: the increase in gross profit margin during the reporting period, which was benefited from the improvement in the cost control achieved by the group; and the decrease in administrative expenses in relation to share options granted by the company on 29 June 2015, which is the encouragement and reward to the management, employees, suppliers and customers for their performance.