Silver Grant International Industries Limited provided group earnings guidance for the year ended December 31, 2016. For the year, the company announced that it is expected that the group will record a loss attributable to owners of the company for the year ended 31 December 2016. However, when compared with the loss of approximately HKD 65.8 million in 2015, the loss has recorded a significantly decrease with a decrement in excess of 40%. The board considers that the expected loss was principally attributable to the reasons are: The total increase in the group's major source of income in 2016 was approximately HKD 94.5 million in aggregate (including increase in fair value gain on investment properties amounting to approximately HKD 33.1 million, increase in gain on disposal of available-for-sale investments amounting to approximately HKD 27.4 million and increase in fair value gain on loan receivable with embedded derivative amounting to approximately HKD 34.0 million) was not enough to compensate the significant increase in loss of Tai Zhou United East Petrochemical Company Limited (‘TZ United East’). In the current year, TZ United East recorded a significant increase in after tax loss to approximately HKD 357.8 million (2015: HKD 185.2 million). Increase in loss was mainly attributable to the fact that TZ United East was still in a non-producing condition for a majority time during the year, significant operating loss was thus incurred due to accumulation of operating expenses in the absence of revenue generated from production. Moreover, the construction of the Binjiang Project by TZ United East was completed and transferred to fixed asset in the current year, the cessation of capitalizing loan interest and certain direct expenses in respect of the qualifying assets and commencement to provide for depreciation in respect of the assets had further increased TZ United East's total losses in the current year. TZ United East cooperated with the Company's principal associate, Zhong Hai You Qi (Taizhou) Petrochemical Company Limited and resumed production by the end of the year by way of joint production. The Board expects that after resuming production, the loss pressure originated from TZ United East will ease off prominently and it will significantly improve the Group's profitability in the future.