Huisheng International Holdings Limited provided group earnings guidance for the six months ended June 30, 2017. The board of directors of the company informed the shareholders of the company and potential investors that based on information that is currently available, the group is expected to record a substantial decrease in profit for the six months ended 30 June 2017 as compared to that of the six months ended 30 June 2016 which is mainly resulted from the decrease in revenue and average gross profit margin. The reason for such decrease is due to the decrease in the slaughtering volume as a result of keen competition from imported pork products and also the changing dietary habit, and also the lower unit price as compared with the same period of last year as a result of supplies over demands. Given the selling price of pork products is more elastic than the cost of hogs, this resulted that the average selling price of pork products decreased at a faster pace than the average cost of hogs. Also, the smaller slaughtering volume means the lower utilization rate, and hence each products may bear more fixed costs. Besides, the company recognized an equity-settled share-based payment expenses of approximately RMB 7.6 million for the share options granted to an executive director, employees and consultants on 10 April 2017.