The board of directors of Tianda Pharmaceuticals Limited announced that, based on a preliminary assessment of the unaudited management accounts of the Group for the six months ended 30 September 2017 (the Current Period), the Group expects to record a decline in the consolidated net profit attributable to owners of the Company for the Current Period as compared to the period for the six months ended 30 September 2016 (the Last Corresponding Period). However, looking ahead, the Company expects that the current year's financial results after excluding the one-off extraordinary gains would be maintained at a similar level as previous financial year. The Board is of the view that the expected decline in the consolidated net profit attributable to owners of the Company for the Current Period is as a result combining the following favorable and unfavourable factors: The net profit in pharmaceuticals and biotechnology business recorded a double-digit percentage growth as compared to the Last Corresponding Period; A fair value gain on derecognition of investments in redeemable convertible preference shares was recognized in the Last Corresponding Period, but no such fair value gain was recognized during the Current Period; and In contrast to exchange gain and fair value gain on derivative financial instruments recorded in the Last Corresponding Period, a net exchange loss incurred due to depreciation of HKD against Renminbi after offsetting fair value gain on derivative financial instruments during the Current Period.