Huiyin Smart Community Co., Ltd. provided earnings guidance for the six months ended June 30, 2016. For the period the company based on preliminary assessment of the unaudited consolidated management accounts, expects to record a loss compared with the net profit for the six months ended June 30, 2015. (the "Comparative Period"). The change is mainly attributable to the following reasons: expenses incurred by the group from the share options granted to eligible participants dated on 22 December 2015 and 14 May 2015 due to the recruitment of many e-commerce professional employees based on the demand of human resources for the rapid expansion of the smart community e-commerce business; and the provisions made by the group in respect of the amounts due from suppliers (if any) and the decrease of the group's revenue scale, because the group gives up some traditional household appliances distribution rights, which occupy major cash resource, for transition to smart community e-commerce business and uses the relevant resources to develop the new business of smart community e-commerce.