Zhejiang Chang'an Renheng Technology Co., Ltd. provided earnings guidance for the year ended 31 December 2016. For the year, the company s anticipated that the net profit of the Group for the year ended 31 December 2016 is expected to record a significant decline as compared to that of the corresponding period in 2015, and it is probable that a loss may be incurred. Based on the information currently available, such decline in net profit is mainly attributable to the impairment loss of long outstanding trade receivables and the increase in operating costs such as transportation expenses.