The board of directors of Guangnan (Holdings) Limited announced that based on the company's preliminary review of the management accounts of the group for the six months ended 30 June 2016, the consolidated profit attributable to shareholders of the company for the six months ended 30 June 2016 is expected to have a decline of approximately 35% as compared to that for the corresponding period in 2015, primarily attributable to the continued downturn in operating environment of the iron and steel industry. The excess of supply over demand in the industry and intense competition continue to place significant pressure on the sales of tinplate products.