Honghua Group Limited announced that based on the unaudited consolidated management accounts of the company and its subsidiaries for the six months ended 30 June 2016, the Group's loss for the six months ended 30 June 2016 is expected to increase substantially as compared to the group's loss for the six months ended 30 June 2015. The expected loss is primarily due to the fact that the international oil prices continuously fluctuated at low level, the oil companies significantly reduced capital expenditures and cut costs which resulted in a substantial decrease of the Group's sales revenue.