The board of the directors of China Outfitters Holdings Limited announced that, based on the information currently available to the group, it is expected that group's unaudited net profit for the six months ended June 30, 2016 will decrease significantly by at least 40% as compared with that for the six months ended June 30, 2015 of RMB 94,653,000. The decline of the unaudited net profit is mainly attributable to the continuous slowdown in growth of macro-economy and weak retail market sentiment; the impact of e-commerce on conventional retailers and led to a decrease in revenue of the Group; decrease in gross profit margin due to provisions against long-aging inventories; and decrease in other income and finance income.