The Board of Lianhua Supermarket Holdings Co. Ltd. informed the shareholders of the company and potential investors that the group's net loss for the nine months ended 30 September 2016 is expected to increase by approximately 20% to 40% as compared to that of the nine months ended 30 September 2015. Such expected increase in loss for the nine months ended 30 September 2016 is mainly attributable to shrinking market demand and intensified competition of online and offline retailers due to diversified shopping channels, which led to a decrease in the revenue of the company from sales of merchandise. As a result, it is anticipated that the financial results of the company for the twelve months ending 31 December 2016 is likely to assume the net loss trend.