Shougang Concord Century Holdings Limited provided unaudited earnings guidance for the year ended December 31, 2016. The group is expected to record a net profit in the range of HKD 5,000,000 to HKD 15,000,000 as compared with a net loss of HKD 376,985,000 for the year ended December 2015. The increase in gross profit during the year, which was the result of increase in sales volume of steel cords attributable to the market increase in demand of steel cords; and lowered unit production cost of steel cords arising from increased production; the amount of net recovery of bad and doubtful debts during the year, against net allowance of bad and doubtful debts made in 2015; no further substantial allowance for inventories is expected for the year ended 31 December 2016 due to rising average selling price of steel cord; as compared to approximately HKD 13,511,000 of allowance for inventories made in 2015; and no further substantial impairment loss is expected to be made against property, plant and equipment and goodwill for the year ended 31 December 2016 due to significant improvement in operating results of core subsidiaries of the Company. The impairment losses recognised in respect of property, plant and equipment and goodwill for the year ended 31 December 2015 were HKD 93,000,000 and HKD 41,672,000 respectively.