Comtec Solar Systems Group Limited provided earnings guidance for the year ended December 31, 2016. The company expects that the group would record a substantial net loss for the year ended 31 December 2016, although at that time the magnitude of such loss is yet to be quantified. The company expects that the company will record a net loss of over RMB 1,000.0 million for the year ended 31 December 2016, as compared to a net loss of approximately RMB 434.7 million for the year ended 31 December 2015. The anticipated net loss was primarily attributable to the write-down of approximately RMB 339.3 million of the assets related to the manufacturing facilities of the Group in Malaysia, which are proposed to be disposed of to an independent third party at a discount to their net book value as disclosed in the announcement of the Company dated 3 January 2017; the write-down of approximately RMB 276.5 million of the assets related to the manufacturing facilities of the Group in the People's Republic of China; the accrued expenses for termination of the Malaysian plant under construction as a result of the disposal of major assets and properties of Comtec Malaysia and downsize of manufacturing business of approximately RMB 149.0 million; a gross loss of approximately RMB 152.6 million, which was primarily attributable to the write-down of the Group's inventory of approximately RMB 94.5 million due to the decrease in the market prices of solar wafers and polysilicon; the decrease in revenue due to the decrease in average selling prices and shipment volume of monocrystalline ingots and wafers during 2016 recognition of share base payment expenses of approximately RMB 22.4 million; and net exchange losses of approximately RMB 10.1 million. These factors were primarily resulted from the challenging market conditions in the upstream wafer and ingot manufacturing segment of the solar industry, which has deteriorated since the second half of 2016 when a number of large downstream solar module and panel manufacturers announced their plans to scale back or even shut down their production. Under such market conditions, the average selling prices of wafers and polysilicon further decreased during the second half of 2016. The anticipated net loss is mainly attributable to certain non-cash items charged for the year ended 31 December 2016.