The board of directors of Jiangnan Group Limited provided unaudited consolidated accounts for the six months ended June 30, 2017, the group's profit attributable to the owners of the company is expected to decrease by not more than 85%, as compared with that for the corresponding period in 2016 in the amount of approximately RMB 219,415,000. The expected decrease in profit attributable to the owners of the company for the six months ended June 30, 2017 is mainly due to the increase in cost of goods sold as compared with that for the corresponding period in 2016 of approximately RMB 3,189,450,000 which, in turn, lowered the gross profit for the period under review approximately RMB 591,839,000 for the six months ended 30 June 2016 and from the disposal of affected products and the loss from the impairment in the value of inventories as a result of the flood in 2016 and the changes in market requirements in 2017.