China Water Industry Group Limited provided preliminary unaudited consolidated earnings guidance for the year ended December 31, 2015. For the period the company expected to record a net loss for the year ended December 31, 2015. The Directors expected that the financial performance for the year will record a deterioration of not more than 150% as compared to the net profit in 2014 amounted to HKD 229.64 million.

Comparing with the financial performance of 2014, despite the Group recorded slightly improvement in its revenue, the increase of other operating income and the reversal of impairment loss on associates which made positive contributions to the Group's profit, notwithstanding, as a result of the following factors, including but not limited to, absence of one-off gain on disposal of subsidiaries which occurred in 2014, the expected net unrealized loss on financial assets at fair value through profit or loss and the recognition of impairment loss on available-for-sale investments as a result of the volatile stock market condition in Hong Kong in the second half of 2015, a substantial decrease in change in fair value of derivative financial instruments due to convertible bonds being fully repaid in 2014 and 2015, a substantial decrease in gain on disposal of financial assets at fair value through profit or loss and available-for-sale investments realized from the disposal of listed equity securities, a possible impairment loss provided for two sewage treatment projects which were acquired by the Group in 2006 and 2011 respectively, the Group recorded significant deterioration in its financial performance.