Jiyi Household International Holdings Limited provided consolidated earnings guidance for the year ended December 31, 2016. The board of directors of the company based on the preliminary assessment of the unaudited consolidated management accounts of the group for the year ended 31 December 2016 and information currently available to the Board, even though the revenue of the group increased by over 9%, it is expected that the profit attributable to the Shareholders for full year 2016 may record a decrease by over 40% as compared to that of the corresponding period in 2015. Such decrease was mainly attributable to the decrease in gross profit by approximately 21% which was mainly due to the change in product mix and decrease in average selling price because of the keen market and price competition during full year 2016; the decrease in government grants of approximately RMB 4 million; and the increase in interest expense on bank borrowings of approximately RMB 3 million.