ELL Environmental Holdings Limited provided consolidated earnings guidance for the first half year ended June 30, 2016. The Group is expected to record a significant decrease of not less than 60% in its net profit for half year 2016 as compared to a net profit of approximately HKD 17.0 million for the six months ended 30 June 2015. The Board believes that the decrease in the net profit of the Group for first half year 2016 can mainly be attributed to the decrease in construction profit; the substantial increase in cost of raw materials and overhead costs in relation to the operation of the wastewater treatment facilities; and that the Group is still in negotiation with the local governments for water tariff adjustments for the wastewater treatment facilities to cover the aforesaid increase in costs of raw materials and overheads for half year of 2016.