The board of directors of Zhong Ao Home Group Limited reported earnings guidance for the year ended 31 December 2016. The company, based on the preliminary review of the unaudited consolidated management accounts of the Group for the year ended 31 December 2016, has reported that the profits attributable to owners of the company for the year ended 31 December 2016 is expected to record a significant decline as compared with the same period in 2015 or may lead to a loss. Such decline was mainly caused by the significant increase in expenses attributable to the investments made by the Group in enlarging the customer base of online-to-offline (O2O') platform of the Group in order to develop its O2O business. Going forward, in order to mitigate the loss attributable to the development of the O2O business, the Group will consider introducing more stringent cost control measures to reduce the operating expenses of the O2O platform, such as outsourcing its operation, or exploring other feasible means in order to strive a balance between profitability, growth and building customer base in the O2O platform for the benefits of all stakeholders.