BaWang International (Group) Holding Limited provided earnings guidance for the year ended of December 31, 2016. For the period, the company expects that the group will record a net operating profit for the year ended December 31, 2016 as compared to a net operating loss recorded for the corresponding period in 2015. The net operating profit for the year ended December 31, 2016 is primarily attributable to the factors: the introduction of new products with higher margins and increased revenue generated through e-commerce channels, resulting in an increase in operating revenues and gross profits; an one-off amount received by the company after the conclusion of litigation with Next Magazine Publishing Ltd.; a reduction in administrative expenses due to the conclusion of litigation with Next Magazine Publishing Ltd. and a decrease in provisions for bad debts; and a reduction in sales and product promotions expenses due to the efforts by the management to optimize and more efficiently utilize various advertising channels to promote the Group's products.