Ruixin International Holdings Limited provided earnings guidance for the year ended December 31, 2016. For the year, the group is expected to report an estimated loss of around HKD 73.0 million, as compared with the loss of approximately HKD 23.2 million for the year ended December 31, 2015. The increase in loss was mainly due to, among others, the gain on modification of terms of convertible notes in the corresponding period but not in the reporting period; the recognition of tax expenses in relation to the Hong Kong Inland Revenue Department enquiries of the Hong Kong Profits Tax of a subsidiary of the company in respect of the years of assessment 2006/07 to 2014/15 in the reporting period. The increase in operating loss was mainly due to the expansion of loss from the electronic products business as a result of, among others, the drop in revenue resulting in a decrease in the overall gross profit to cover the fixed cost.