Xiezhong International Holdings Limited provided earnings guidance for the six months ended June 30, 2017. For the period, the company expects to record a loss attributable to the equity shareholders of the company in the range of RMB 30 million to RMB 35 million as compared to the profit of approximately RMB 15.4 million of the six months ended June 30, 2016. Based on information currently available to the Board, the expected loss for the Half-Year was mainly attributable to the decrease in gross profit margin of the Group, which was due to the decrease in sales prices and changes in product structure resulting from changes in market demand; the increase in provision of doubtful debts brought by the credit risk arises from certain customers; the increase in bank loans which led to a significant increase in finance costs of the Group and the increase in spending on research and development recorded in income statement.