Tonly Electronics Holdings Limited provides earnings guidance for the first quarter ended March 31, 2016. For the period, the company expected to record a fairly substantial decrease in revenue and profit as compared to the revenue and profit recorded and there are greater pressure and challenges on the yearly results. Based on the information currently available, the main reasons for the expected decrease in revenue and profit during the Relevant Period were as follows: the amount of orders placed by one of the Group's major customers fell below expectation due to the business restructuring of such customer and the amount of orders started to decrease notably from the fourth quarter of 2015; the cooperation model between the Group and one of its other customers has changed, pursuant to which the customer provided the major materials for its orders so that although the business volume with this customer increased by a fairly substantial degree, the sales to this customer obviously decreased; and the overall results of the Group's traditional products decreased, while the intelligent hardware businesses which the Group is actively developing into are still at the start up stage.