Hailan Holdings Limited provided earnings guidance for the year ended December 31, 2016. The board of directors of the company informed the shareholders and potential investors that, based on a preliminary review of the unaudited consolidated management accounts of the Group for the year ended 31 December 2016, it is expected that there will be an over 70% decline of the Group's profit for the year ended 31 December 2016 as compared to that of the year ended 31 December 2015. Such decrease in profit was mainly due to the increase in interest expenses as the Group no longer capitalises the relevant interests expenses for Sanya Phoenix Aqua City Left Shore and Haikou Phoenix Aqua City upon completion of certain product types of the relevant projects; the increase in selling and distribution expenses due to the increase in commission expenses; the increase in administrative expenses mainly incurred from the increase of labor costs and from the amortisation cost of the pre-IPO share incentive scheme of the Group; and the decrease in finance income for the year ended 31 December 2016, despite that the gross profit remained relatively stable for the year ended 31 December 2016 as compared to the year ended 31 December 2015.