Zhong Fa Zhan Holdings Limited provided group earnings guidance for the six months ending September 30, 2015. For the six months, the company announced that based on a preliminary review of the unaudited consolidated management accounts of the group for the period between 1 April 2015 and 31 August 2015 and other information currently available to the Board, it is expected that the Group would record a decrease in revenue and a consolidated net loss for the six months ending 30 September 2015. This is mainly attributable to, among others things, a substantial decline in revenue of the Group during the five months ended 31 August 2015 by approximately 75% as compared with the corresponding period in last year because of decrease in demand for fine jewelry in the People's Republic of China as resulted in the Group's customers placing a significantly lower number of orders with the Group; a decline of the Group's gross margin ratio during the five months ended 31 August 2015 to approximately 4% (six months ended 30 September 2014: approximately 11%) because of the low downstream demand and intensive competition in the industry caused by the economic slowdown and poor consumption sentiment in the PRC.

The Group closely reviews its existing businesses, prudently takes steps to make progress in pursuing the solar technology business in the PRC and carefully examines any further prospective investment opportunities so as to expand the revenue sources of the Group.