Wai Chun Group Holdings Limited provided earnings guidance for the six months ended September 30, 2015. For the period, the board expects that the Group will record a significant increase in net loss as compared to the corresponding period last year. The reasons of the increase in net loss are an increase of approximately HKD 4,400,000 in depreciation for the period; and an increase of approximately HKD 2,000,000 in staff costs due to an increase in the number of staff in the administrative, sales and marketing teams in the People's Republic of China.

The increase in depreciation is due to leasehold improvement with a carrying amount of approximately HKD 8,800,000 at the beginning of the accounting period needs to be amortised fully over the financial year ended 31 March 2016, i.e. its remaining lease term whereas there is no such depreciation for the same period last year. The company is still in the process of finalising the unaudited consolidated interim results of the Group for the six months ended 30 September 2015.