The board of directors of Guangnan (Holdings) Limited informed the shareholders of the company and potential investors that, based on the company's preliminary review of the management accounts of the group for the year ended 31 December 2016, the consolidated profit attributable to shareholders of the company for the year ended 31 December 2016 is expected to be increased by more than 60% as compared to that for the corresponding period in 2015, primarily attributable to significant decrease in exchange losses as compared to that for the corresponding period in 2015; the high price of live pigs in 2016 has resulted in a significant net profit for the two associated companies which are engaged in the pig farming and sales of pigs; and the reduced purchase cost of raw materials and continued to receive income from government grants of an associate, Yellow Dragon Food Industry Co. Ltd. leading to a profit generated by this associate in 2016 as compared to a loss in 2015, which are sufficient to offset the decrease in gross profit of tinplating business and the decrease in interest income for the current year.