Zhongzhi Pharmaceutical Holdings Limited board announced that based on the preliminary review of the unaudited consolidated management accounts of the Group for the eleven months ended 30 November 2016, a material reduction in net profit of the Group for the year ending 31 December 2016 are expected as compared to those for the year ended 31 December 2015. The expected material reduction in net profit is mainly attributable to the increase in selling and distribution expenses incurred due to: the increase in advertising expenses and promotional expense for promoting the Company's modern decoction pieces and its brand 'Caojinghua' through different media channels and platforms; and the increase in sales and marketing staff for the exploration and expansion of distribution networks, including hospital and internet channels.