Chinese Estates Holdings Ltd. provided earnings guidance for the six months ended June 30, 2016. For the period, the company expected that the Group may record an increase in the revenue ranging from 96% to 106% and may record a consolidated net profit attributable to the owners of the company for the six months ended 30 June 2016, as compared with the revenue of HKD 969 million and the consolidated net loss attributable to the owners of the company of HKD 115 million for the six months ended 30 June 2015. The increase in the Revenue and the result of a Profit were primarily due to the following reasons:- Disposal of a subsidiary holding MassMutual Tower (the “MMT Disposal”). Subsequent to the completion of the MMT Disposal and disposal of a subsidiary holding The ONE in January 2016 and July 2015 respectively, the Group’s rental revenue and net rental income for the Period have been significantly decreased when compared to that for the corresponding period in 2015. However, upon completion of the MMT Disposal, the Group recorded a substantial gain on disposal of a subsidiary of approximately HKD 1,277 million (subject to audit and adjustment). The gain was mainly derived from the realisation of fair value gain recognised on the Group’s owner-occupied part of MassMutual Tower which was stated at cost less accumulated depreciation. Increase in sale of trading properties. In the first half of 2016, completion of sale of certain residential units and car parking spaces at 55 Conduit Road (70% interest) has recorded approximately HKD 1,480 million in the Revenue and has contributed attributable gross profit to the Group of approximately HKD 657 million. There were minimal sales of trading properties recorded in the corresponding period in 2015. Imputed interest income from deferred consideration receivables. Following the disposals of subsidiaries holding Chengdu projects and Chongqing project in the second half of 2015 and the MMT Disposal, part of the respective considerations of the respective disposals would be received over one year from the respective completion dates. Accordingly, the deferred consideration receivables were initially recognised at fair value and subsequently measured at amortised cost. During the Period, the Group recorded an imputed interest income of approximately HKD 474 million from the deferred consideration receivables, however no similar imputed interest income was recorded during the first half of 2015. Disposal of a subsidiary holding Evergo Tower at Shanghai. During the Period, the Group had disposed of a subsidiary holding Evergo Tower at Shanghai, People’s Republic of China. It is expected that a gain on the Evergo Disposal of approximately HKD 721 million (before tax and subject to audit and adjustment) will be recorded in the Period. Income from listed investments held-for-trading and treasury products. The Group has in the ordinary and normal course of business conducted its securities investment activities for years. During the Period, based on the preliminary assessment, it is expected that the Group will record net profit of approximately HKD 434 million from the segment of the listed investments held-for-trading and treasury products as compared with that of HKD 150 million for the corresponding period in 2015. Such net profit includes realised gain on disposal; unrealized loss on changes in fair value; and net income from interest income, other net investment income and other net finance income. The increase was mainly attributable to, among others, the increase in interest income from bonds. Income from Financial Assets measured at FVTOCI. The Group will record a dividend income of approximately HKD 191 million (before withholding tax and transaction costs) from Shengjing Bank during the Period. Loss on fair value changes on investment properties. The Group’s investment properties were revalued as at 30 June 2016 and a loss on fair value changes of approximately HKD 0.9 billion will be recorded for the Period as compared with the fair value as at 31 December 2015. The decline in fair value in the first half of 2016 was mainly due to a decrease in fair values of the retail properties in Hong Kong as a result of rental rates of certain retail business sectors have shown indications of reaching their peaks. In the first half of 2015, a loss on fair value changes on investment properties of HKD 544 million was recorded. The fair value change is a non-cash item and will not affect the cash flow of the Group.