Jiangnan Group Limited provided earnings guidance for the year ended 31 December 2017. For the period, the group's profit attributable to the owners of the company is expected to decrease by approximately 80%, as compared with that for the year ended 31 December 2016 in the amount of approximately RMB 531,322,000. The expected decrease in profit attributable to the owners of the company for the year ended 31 December 2017 is mainly due to the increase in cost of goods sold as compared with that for the year ended 31 December 2016 of approximately RMB 7,753,184,000 which, in turn, lowered the gross profit margin for the year ended 31 December 2017; and the loss from the disposal of inventories as a result of the flood in 2016 and the changes in market requirements in 2017 (such changes were absent during the year ended 31 December 2016).