The board of directors of Phoenitron Holdings Limited provided earning guidance for year ended December 31, 2016. For the period, the company announced to the shareholders and potential investors that, based on the Board's preliminary review of the unaudited consolidated management accounts of the Group for the year ended December 31, 2016 which have not been audited by the auditors of the company nor reviewed by the audit committee of the Board, it is anticipated to record a net loss attributable to owners of the company for the reporting Period as compared to a net profit attributable to owners of the company for the corresponding period in 2015. The Board believes that such expected net loss is mainly attributable to the combined effects of: certain issues in relation to Hota Group, including the impairment loss on the full amount due from the joint venture companies of the Group, Hota (USA) Holding Corp. and its wholly owned subsidiary, Hota Auto Recycling Corporation of approximately HKD 223.0 million; the incurrence of impairment loss on the fair value of the available-for-sale financial assets in accordance with the relevant accounting standards of approximately HKD 11.7 million; decrease in interest income and financial and management consultancy service fee income of approximately HKD 22.4 million and HKD 3.0 million respectively, as the interest rate chargeable to Hota Group was lower for the six months ended 30 June 2016 as compared to the corresponding period in last year and that both incomes were no longer being accrued for and chargeable to Hota Group since the latter half of the Reporting Period; exchange loss arising from translation of the carrying amount of the amount due from Hota Group reduced by approximately HKD 6.0 million, and other major reasons such as a gain on disposal of subsidiaries of approximately HKD 8.4 million; and the cease of operations of the Beijing plant during the reporting period reduced the segment loss by HKD 8.5 million, from approximately HKD 17.3 million in the corresponding period in last year, to approximately HKD 8.8 million.