Shandong Luoxin Pharmaceutical Group Stock Co., Ltd. provided earnings guidance for the nine months ended September 30, 2016. For the period, based on a preliminary assessment of the unaudited consolidated management accounts of the group and the current available information, the group expected to record a significant decrease in the net profit for the nine months ended September 30, 2016 as compared with that for the corresponding period in 2015. The board considers that the significant decrease in the net profit of the group was mainly attributable to the continuous decrease in average selling prices of products of the group which was affected by the current round of pharmaceutical tenders; significant increase in operating expenses due to increase in expenses for research and development, such as quality consistency evaluation on generic drugs, clinical trials of generic drugs and research and development of innovative drugs, and increase in expenses for establishing terminal sales team and expanding sales network.