Labixiaoxin Snacks Group Limited provided earnings guidance for the six months ended June 30, 2014. The company announced that based on the preliminary review of unaudited management accounts of the company for the six months ended June 30, 2014, the sales and net profit of the group for the six months ended June 30, 2014 is expected to be not more than approximately RMB 620 million and RMB 12 million, respectively, representing a significant decrease as compared to the corresponding period in 2013. Such significant decrease was primarily attributable to a sales return of the Group's products, amounted to approximately RMB 133.3 million, as a result of, among others, the reporting of certain media in the PRC including the CCTV news in relation to the supply of toxic gelatin by certain enterprises in food production in mid-March 2014; additional one-off sales discounts given to distributors as a result of the Gelatin Scandal, which reduced the gross profit margin of the group; and increase in marketing and promotional expenses by over 20% as compared to the corresponding period in 2013 in order to enhance consumption sentiment and re-shape the group's brand image.