Shougang Fushan Resources Group Limited provided group earnings guidance for the financial year ended December 31, 2016. For the year, the company announced that based on the preliminary assessment of the board with reference to the unaudited consolidated management accounts of the Group for the financial year ended 31 December 2016 and other information currently available to the Board, the Group would record a turnaround from loss to profit in its 2016 final results. The Group would expect to record consolidated profit attributable to the Shareholders of approximately HKD 112 million for the financial year of 2016 as opposed to the consolidated loss attributable to the Shareholders of HKD 416 million for the financial year of 2015. In 2016, affected by the national structural reform on supply side and the policies of reduction in production capacity of the coal industry, the market price of coal became stable in the second quarter of 2016 and has rebounded sharply since the third quarter of 2016. The Group's average coking coal selling price in the year of 2016 increased when compared to that of the last year, which could offset the negative impact of reduction in production volume resulting from the policy of the limit production. Together with the Group's strict effective cost control, the profitability of the Group has significantly enhanced in the year 2016. In addition, due to the significant rebounded market coal price since the third quarter of 2016 having outperformed what was expected in the interim period of 2016, the Group would reverse partial non-cash impairment loss on mining rights and property, plant and equipment made and the corresponding deferred tax liabilities recognized as income in the interim period of 2016 after assessment for the year of 2016. This impairment for the year of 2016 would reduce significantly when compared to that for the year of 2015.