Shandong Xinhua Pharmaceutical Co. Ltd. provided group earning guidance for the period from 1 January 2016 to 30 June 2016. For the period, the company expected to record an increase in the net profit attributable to the Shareholders as compared to the corresponding period in 2015. Net profit attributable to the shareholders is expected to be RMB 41,375,400 to RMB 49,133,200 (representing an approximate increase of 60% to 90% as compared with the corresponding period of last year). Basic earnings per share are expected to be approximate RMB 0.09 to RMB 0.11. Based on the information available, the expected increase in profit is mainly attributable to the following initiatives adopted by the company: 1. carrying out of in depth research into technology leading to a reduction of energy consumption and production costs; 2. improving the tendering and procurement process leading to a reduction in production costs; and 3. exploring new markets and expanding resources in marketing thereby achieving an increase in the sales of raw drug substance and new preparation products compared to that of the previous year.