COFCO Meat Holdings Limited provided earnings guidance for the twelve months ended December 31, 2016. The board of directors of the company announced that, based on its preliminary assessment of the unaudited management accounts of the Group for the twelve months ended December 31, 2016 and the information currently available to the Board, it is expected that the profit attributable to owners of the company after biological fair value adjustments for the Year 2016 of the Group will be no less than RMB 850 million, representing a year-on-year growth of no less than 460%. The Board considers that, the expected improvement in the performance of the Group is mainly attributable to the following reasons: It is expected that the profit for the Year 2016 attributable to owners of the company before biological fair value adjustments will be no less than RMB 850 million. Benefited from the year-on-year increase of biological assets stock of the Group at the end of the Year 2016 and supported by fair price, it is expected that the profit attributable to owners of the company after biological fair value adjustments for the Year 2016 will be no less than the figure before adjustments; The hog production operations of the Group has been benefited from the increase of hog prices, due to the decrease in sow stock in China which was at significantly low level at the end of the Year 2016; The Group focuses on optimizing the operations and improving the operating efficiency, the operating efficiency of each business segment has been enhanced. The Group successfully reduced the hog production costs thanked the increased production efficiency, and optimized the sales channels mix of fresh pork, processed meat products and international trading business; and the sales volumes of the Group's major products, such as fresh pork and processed meat products, recorded a year-on-year growth, through market expansion of the businesses.