China Digital Video Holdings Limited provided earnings guidance for the six months ended June 30, 2016. For the period, the group expected to record a significant increase in its net profit as compared to the six months ended 30 June 2015. Such significant increase was primarily attributable to the fair value gain on redeemable convertible preferred shares as a result of the completion of the global offering and the listing of shares of the Company on the Growth Enterprise Market of the Stock Exchange (the "Listing") in the 2016 Interim Period. The adjusted net profit of the Group (excluding share-based compensation expense, fair value gain or loss on redeemable convertible preferred shares, expenses related to the Listing, gain on disposal of intangible assets and gain on disposal of a subsidiary) is also expected to increase significantly for the 2016 Interim Period as compared to that of the 2015 Interim Period. Such increase was mainly attributable to (a) the increase in gross profit and the improvement of gross profit margin; and (b) the decrease in the income tax expenses due to the recognition of preferential income tax rate of a subsidiary of the Company in the 2016 Interim Period.