Shunfeng International Clean Energy Limited provided earnings guidance for the six months ended June 30, 2017. For the period the company expects to record a loss of approximately RMB 330 million as compared to the unaudited profit of approximately RMB 54 million for the six months ended June 30, 2016, and is mainly attributable to the following reasons: although the sales volume of the group's solar energy products increased by approximately 25% as compared to the first half of 2016, the competition in the sales market of solar energy products continued to be intense and the average selling price of the Group's solar energy products dropped by approximately 24.5% as compared to the First Half of 2016, which resulted in a decrease of the Group's gross profit from approximately RMB 991 million (gross profit margin of approximately 22%) in the first half of 2016 to approximately RMB 791 million (gross profit margin of approximately 16%) in the first half of 2017; and the group has received continuous support from financial institutions and obtained new loans and financing to develop its solar energy products and power generation business in the first half of 2017. Further, as the newly constructed solar power plants commenced operation in the first half of 2017, the group ceased the capitalization of a portion of interest expenses related to the construction of those solar power plants in the first half of 2017. As a result, the finance costs of the Group in the First Half of 2017 increased by approximately 51% to RMB 687 million as compared to the first half of 2016.