Kai Yuan Holdings Limited provided earnings guidance for the six months ended June 30, 2015. The board of directors of the Company announced that based on the preliminary assessment of the unaudited management accounts of the Group for the six months ended 30 June 2015 and information currently available to the Company, the Group is expected to record a loss for the six months ended 30 June 2015 as compared with a profit of approximately HKD 14.5 million for the corresponding period in 2014. The expected loss was principally attributable to the increase in finance cost arising from interest on bank loan and loan from a related company; the share of loss from the Group's associates engaged in steel manufacturing and trading in China, which mainly resulted from soften demand as well as reduction in gross profit margin of steel products; and the operating loss of the Group's heat energy supply segment as heat energy supply facilities had yet to be utilized at economy of scale.