Austar Lifesciences Limited provided earnings guidance for the ending December 31, 2016. The board of directors of the company informed the shareholders of the company and potential investors that, based on information currently available to the Group, the Group is expected to incur a loss attributable to the shareholders of the company for the year ending 31 December 2016, as compared to a profit attributable to the shareholders of the company of approximately RMB 6,384,000 for the year ended 31 December 2015. The expected loss is primarily attributable to the increase in the operating expenses during the period under review mainly due to (a) the increase in provision for impairment on trade receivables and inventories; (b) the increase in selling and marketing expenses; and (c) the increase in research and development expenses. Moreover, the prolonged execution time for certain projects undertaken by the Group during the period under review has resulted in an increase in budgeted costs and some projects with a relatively lower gross profit margin were undertaken for the purpose of retaining customers. The above factors have had negatively affected the company's operating results for the year ending 31 December 2016.