Chigo Holding Limited announced earnings guidance for the year ended 31 December 2015. The board of directors of the company to inform the Company's shareholders and potential investors that the Group is expected to record a substantial increase in net loss for the year ended 31 December 2015, as compared to the net loss for the same period in 2014. Based on a preliminary review of the consolidated management accounts of the Group, the substantial increase in the consolidated net loss was principally attributable to the following reasons the provisions made by (Guangdong Chigo Air-conditioning Co., Limited, a wholly-owned subsidiary of the Company) due to a request of the Finance Bureau of Lishui Town, Nanhai, Foshan, the People's Republic of China (the "PRC") to return certain subsidies for its sale of energy-saving air-conditioners amounting to RMB 199,190,000 (subject to audit) in aggregate; due to the macroeconomic downturn in the PRC, the overall demand for air-conditioning products was weak and the air-conditioning industry was very competitive in 2015.

As a result, the turnover and gross profit of the Group decreased on a year-on-year basis; and) an increase in selling and distribution costs, mainly due to the increase in advertising and promotion expenses.