The board of directors of China Water Industry Group Limited announced that based on the preliminary review of the unaudited management accounts for the six months ended June 30, 2016 (2016 interim period), the Group is expected to record a net loss in the range of HKD 0.50 million to HKD 3.00 million, representing a substantial deterioration in performance as compared to the net profit of HKD 234.48 million for the six months ended June 30, 2015 (2015 interim period). Despite the Group recorded an improvement in revenue and gross profit, an increase in other operating income and a gain on disposal of available-for-sale investments which made positive contributions to the Group's profit, the Group is expected to record a net loss in the 2016 interim period mainly due to the continue unfavourable stock market condition in Hong Kong in the first half of 2016, resulting in fair value loss and impairment loss on the Group's investments in the 2016 interim period, as compared with a net gain of HKD 256.47 million on financial assets at fair value through profit or loss which was recorded in the 2015 interim period; and the absence of reversal of impairment loss of HKD 33.54 million on an associate in the 2016 interim period, which was recognised in the 2015 interim period.