Zhongzhi Pharmaceutical Holdings Limited provided earnings guidance for the six months ended June 30, 2016. For the six months, that based on the preliminary review of the unaudited consolidated management accounts of the group for the five months ended 31 May 2016, a material reduction in net profit of the group for the six months ending 30 June 2016 are expected as compared to those for the six months ended 30 June 2015. The expected material reduction in net profit is mainly attributable to the increase in selling and distribution expenses incurred due to (i) the increase in advertising expenses for promoting the company's modern decoction pieces and its brand Caojinghua through different media channels and platforms; (ii) the increase in sales and marketing staff for the exploration and expansion of distribution networks, including hospital and internet channels; and (iii) the increase in the number of self-operated chain pharmacies by 32 to 233 as compared to the corresponding period.