EVA Precision Industrial Holdings Limited provided earning guidance for the year ended December 31, 2016. For the period net profit is expected to decrease by approximately 70% to 80% as compared to that in 2015. The change is mainly due to: the reduction in orders from customers in office automation equipment and consumer electronics sectors as a result of the lackluster global and Chinese economies. In particular, a slowdown in product development activities of the customers resulted in a decrease in the revenue contribution from moulds production to total turnover of the Group which, in turn, had a negative impact on the overall gross profit margin as moulds are products of higher profit margin; Despite various costs control measures implemented by the group, the decrease in turnover led to declining economies of scale since certain costs were fixed; the decrease in interest income from bank deposits as the group converted a significant portion of its Renminbi bank deposits into Hong Kong and United States dollars bank deposits in the second half of 2015, and Hong Kong and United States dollars bank deposits were of lower interest rates as compared to Renminbi bank deposits; Share option costs relating to the share options granted to the directors and certain employees on 8 July 2016; and the initial costs incurred on the group's new industrial park in Vietnam.