Wuyi International Pharmaceutical Company Limited provided consolidated earnings guidance for the six months ended June 30, 2017. The board of directors of the company hereby informs shareholders of the company and potential investors that, based on the information currently available to the group, the group expects to record a significant increase in its unaudited consolidated net loss for the six-month period ended 30 June 2017 as compared to that for the six-month period ended 30 June 2016. The board believes that the group's financial performance has been affected by an increase in loss of the group mainly due to the turnover decreased while the fixed costs including depreciation charges and salaries did not decrease as the turnover, which affects the overall result; due to the decrease in the turnover, the Group is now conducting assessments on the profitability and the impairment loss for those subsidiaries newly acquired last year in order to reflect the recoverable amount of their intangible assets and goodwill generated; however, the Board would like to emphasize that the impairment loss of those intangible assets and goodwill generated (if any) is a non-cash expense with no impact on the Group's cash flow and operations; and due to the decrease in the gross profit margin and the impact of the above reasons, the Group and the independent valuer are now conducting assessments on the profitability and the impairment loss for fixed assets (e.g. factories and production equipment, etc.) in order to reflect the recoverable amount of the relevant assets; however, the Board would like to emphasize that the impairment loss of these fixed assets (if any) is a non-cash expense with no impact on the Group's cash flow and operations.