Zhejiang Tengy Environmental Technology Co. Ltd. provided earnings guidance for the six-months ended June 30, 2016. Based on the preliminary review of the group's unaudited management accounts of directors of the company, the Board informed the shareholders of the company and potential investors that as compared with the group's unaudited profit attributable to equity holders of the Company of approximately RMB 22.7 million for the six-month period ended 30 June 2015, the Group is expected to record a significant increase in profit attributable to equity holders of the company for the relevant period. The increase was mainly attributed to, among other things, (1) further enhancement of the bargaining power of the company over its projects due to the significant increase in market recognition and competitiveness after the listing of the company on the Main Board of the Stock Exchange; (2) the company's capability of undertaking projects with higher gross profit owing to its unremitting efforts in technological research and development; and (3) the maintenance of overall steel price in the PRC market at low levels which facilitates the increase in the profitability of the company.