Real Nutriceutical Group Limited provided consolidated earnings guidance for the year ended 31 December 2016. For the year, the company expected to record an unaudited loss of the Group for fiscal year 2016 as compared to the audited profit attributable to owners of the Company of approximately RMB 401 million for the year ended 31 December 2015. Such loss for fiscal year 2016 was primarily attributable to: (1) an approximately 40% decrease in the revenue of the company for fiscal year 2016 mainly as a result of a decrease in the revenue of the Group's major products, namely health supplements and beverage products due to the general weakness in China consumer markets; (2) a decrease in the gross profit margin for fiscal year 2016 by approximately 10% as compared to a gross profit margin for fiscal year 2015 of 65.4% due to a change in the sales mix and an increase in the production costs; and (3) an increase in the selling and distribution costs as a percentage of revenue for fiscal year 2016 by approximately 17% as compared to the selling and distribution costs as a percentage of revenue for fiscal year 2015 of 26.4% because the advertising and promotional activities were less effective in the downturn of consumer sentiment in China.