Zhejiang RuiYuan Intelligent Control Technology Company Limited provided earnings guidance for the six months ended June 30, 2017. The board of directors of the company announced that based on the preliminary review of the unaudited consolidated management accounts of the group for the six months ended 30 June 2017, it is expected that the group may record an increased net loss attributable to the shareholders of the company for the six months ended 30 June 2017 as compared to the loss for the six months ended 30 June 2016 and loss for the year ended 31 December 2016. The main reasons for the group to record an increased loss were that: (1) the group incurred additional legal and professional fees in defending, amongst others, the company and its subsidiary Hong Kong Wan Li Enterprise Company Limited, in the Labour Tribunal of Hong Kong; and (2) the products' gross margin of the group was lowered due to the higher price competition as the Group strived to gain more market shares for its newly developed products and the higher cost of sales in relation to such new products.