Qinqin Foodstuffs Group (Cayman) Company Limited provided group earnings guidance for the six months ended 30 June 2017. The company expected that the group may record a substantial decrease in its consolidated net profit for the six months ended 30 June 2017 as compared to approximately RMB 39.6 million for the corresponding period in 2016 before one-off listing expenses and net of related tax impact. The substantial decrease in the consolidated net profit is mainly attributable to the increase in costs for certain of the group's major raw materials and packaging materials, which lowered the gross profit margin of its major products by approximately 3% to 5% and reduced the consolidated net profit of the group; and a decline in the revenue of the group for the six months ended 30 June 2017 by approximately 8% as compared to that for the corresponding period in 2016, mainly as the Group did not launch any new products during the six months ended 30 June 2017 and there was a decrease in sales volume of certain existing products.