Guangnan (Holdings) Limited provided earnings guidance for the year ended 31 December 2015. The company reported that the consolidated profit attributable to shareholders of the company for the year ended 31 December 2015 is expected to have a substantial decline of approximately 50% as compared to that for the year ended 31 December 2014, primarily attributable to the factors, that in respect of the tinplating business, the excess of supply over demand in the iron and steel industry and intense competition placed significant pressure on the sales of tinplate products. The selling price and sales volume of tinplate products of the Group decreased during the current year, resulting in a decrease in the gross profit for the year ended 31 December 2015 as compared to that for the year ended 31 December 2014; as the exchange rate of Renminbi against the United States Dollars depreciated in the second half of 2015, the exchange loss for the year ended 31 December 2015 was more than that for the year ended 31 December 2014.

However, the impact of this increase in exchange loss mentioned above was partly offset by the increase in interest income for the current year as compared to that for the year ended 31 December 2014; and the valuation gain on investment properties for the year ended 31 December 2015 is expected to decrease as compared to that for the year ended 31 December 2014.