Guangdong Land Holdings Limited provided consolidated earning guidance for the six months ended June 30, 2016. The board of directors of the company informed the shareholders of the company that, based on the company's preliminary evaluation of the unaudited consolidated management accounts of the group, which have not been reviewed by the company's auditors, the Group is expected to record an unaudited net loss attributable to owners of the company of less than HKD 15 million for the six months ended 30 June 2016. While the Group recorded an unaudited net profit attributable to owners of the Company of approximately HKD 335 million for the same period last year, however, if the combined effect of three non-operating gain items (as set out below) in the aggregate amount of approximately HKD 302 million was excluded, the Group's unaudited net profit attributable to owners of the Company in the first half of 2015 would only have amounted to approximately HKD 33 million. Reference is made to the Company's 2015 interim report, where it was disclosed that the Group recorded a combined gain in the aggregate amount of approximately HKD 302 million due to the following three non-operating gain items in the first half of 2015, namely (i) the acquisition of 100% equity interest in Triumphant Success Limited (which indirectly holds an 80% interest in the "Ruyingju" residential project located in Panyu District, Guangzhou, the PRC resulting in the recognition of a gain on bargain purchase of approximately HKD 234 million; (ii) the release of exchange reserve upon settlement of inter-company balance between the Company and its subsidiary of approximately HKD 48.05 million; and (iii) the imputed interest income arose from long-term receivables of approximately HKD 20.06 million. The non-operating gain under items (i) and (ii) above were of a one-off nature. Further, as mentioned in the Management Discussion and Analysis in the Company's 2015 annual report, the said imputed interest income would not occur in 2016. If the combined effect of the above mentioned non-operating gain items was excluded, the Group's unaudited net profit attributable to owners of the Company in the first half of 2015 would only have amounted to approximately HKD 33 million. During the first half of 2016, the Group did not record any of the above mentioned non-operating gains. Other than the above non-operating gain items in the first half of 2015 (which did not occur in the first half of 2016), the material items that are expected to affect the results of the Group in the first half of 2016 include (i) a decrease in bank interest income due to the decrease in the interest rate on deposit of Renminbi ("RMB"); and (ii) a depreciation of RMB against HKD resulting in the recognition of exchange losses during the first half of 2016 (compared to the slight appreciation of RMB against HKD in the same period last year, resulting in the recognition of a slight exchange gain), which were partially offset by the sale of residential units under the Ruyingju residential project, which was stable and the average selling price was higher than that of last year. The revenue from such sale of residential units contributed to the consolidated revenue and results of the Group. The Group acquired its interest in the Ruyingju residential project in April 2015 and that during the first six months of 2015, there was no such residential unit delivered and the Ruyingju residential project recorded operating expenses only. Despite the expected unaudited net loss attributable to owners of the Company of less than HKD 15 million for the six months ended 30 June 2016 (while the profit in the same period last year was to a large extent affected by certain non-operating gain items), the Group's financial position remained stable as at 30 June 2016.