Greater China Financial Holdings Limited provided earnings guidance for the six months ended June 30, 2016. The board of directors of company informed the shareholders of the company and potential investors that, based on the management' s preliminary assessment of the unaudited consolidated management accounts of the company and its subsidiaries, the group expects to record a significant loss in the unaudited consolidated management accounts of the group for the six months ended 30 June 2016 as compared with the profits in the corresponding financial period in 2015 mainly due to the following reasons:- DE-CONSOLIDATION; Reference is made to the announcement of the company dated 22 July 2016 in relation to the legal actions to be taken by the company against (Shanghai Kuailu Investment Group Company Limited) ("Shanghai Kuailu") to enforce its rights under the variable interest entity contracts ("VIE Contracts"). Capitalised terms used in this announcement shall have the same meanings as those defined in the Announcement unless otherwise stated. The Company has not received any feedback and responses from Shanghai Kuailu up to the date of this announcement. Due to (i) the management appointed by the Group to (Shanghai Xinsheng Pawnshop Company Limited) (Xinsheng) and (Shanghai Zhongyuan Pawnshop Company Limited) (Zhongyuan) is not able to exercise the rights to manage the business of pawn broking and money lending in the PRC of Xinsheng and Zhongyuan under the respective exclusive consulting service agreement of the VIE Contracts; and the Company had been unable to (a) access the complete sets of books and records together with the supporting documents of Xinsheng and Zhongyuan and (b) maintain and operate the business of Xinsheng and Zhongyuan. As such, the Directors are of the view that the Company has lost its control over Xinsheng and Zhongyuan. As a result, the accounts of Xinsheng and Zhongyuan would be de-consolidated from the Group's consolidated financial statements for the six months ended 30 June 2016. The de-consolidation of the accounts of Xinsheng and Zhongyuan would have a significant financial impact on the Group due to a material net loss of the Group on de-consolidation of the accounts of Xinsheng and Zhongyuan and impairment loss on amounts due from de-consolidated subsidiaries of approximately HKD 453 million. A significant impairment loss on goodwill of 45% equity interest in Intraday Financial Information Service Limited and its subsidiaries of approximately HKD 267 million and a significant share of loss of associates are recorded during the period under review. The impairment loss is based on the preliminary valuation results which reflect the latest development of the internet finance platform operation of Intraday Financial Group. Recently the third party asset management company which provides consulting services to Intraday Financial Group does not have sufficient cash to repay the investment principal of certain products to the investors when the products reach their maturity dates, and the Intraday Financial Group has paid certain sums of the investment principal to the investors utilizing their internal resources which negatively affected the operations and results of the Intraday Financial Group.