Real Nutriceutical Group Limited provided consolidated earnings guidance for the first half ended June 30, 2016. For the period, the company expected to record a decrease in the unaudited profit of the Group for first half of 2016 of approximately 60% to 70% as compared to the unaudited profit of approximately RMB 247 million for the six months ended 30 June 2015. Such decrease in profit for first half of 2016 was primarily attributable to: an approximately 40% decrease in the revenue of the company for first half of 2016 mainly as a result of a decrease in the revenue of the Group's major products, namely health supplement and beverage products due to the general weakness in China consumer markets, a slight decrease in the gross profit margin for first half of 2016 of approximately 3% as compared to a gross profit margin of 67.1% for first half of 2015 due to a change in the sales mix and an increase in the production costs and an increase in the selling and distribution costs as a percentage of revenue for first half of 2016 of approximately 9% as compared to the selling and distribution costs as a percentage of revenue of 25.7% for first half of 2015 because the Group's advertising and promotional activities were less effective in the downturn of consumer sentiment in China.