Huaxi Holdings Company Limited provided consolidated earnings guidance for the year ended 31 March 2016. The board of directors of the company announced that the preliminary assessment on the latest unaudited consolidated management accounts of the group for the year ended 31 March 2016 and information currently available to the board, the group expects to record a substantial decrease in profit after tax for the year ended 31 March 2016 as compared to the corresponding period in 2015. According to the information currently available, the board considers that such a decline in net profit is mainly attributable to, including but not limited to: (i) a decrease in sales volume; (ii) an increase in administrative expenses to establish new companies in Shanghai and Heilongjiang; (iii) the non-cash items including recognition of share-based payment in which share options granted; and (iv) a provision for a decrease in market value of listed securities.