Chigo Holding Limited provided earnings guidance for the six months ended June 30, 2015. The board of directors of the company announced that the group is expected to record a loss for the six months ended June 30, 2015, as compared with a profit for the same period in 2014. Based on a preliminary review of the consolidated management accounts of the group, the consolidated net loss was principally attributable to reasons: in the first half of 2015, due to macroeconomic downturn, the overall demand for air- conditioning products was weak.

In addition, during the period, the air-conditioning industry had been very competitive, some companies in the industry adopted aggressive pricing strategy to alleviate the pressure of their own inventory and a price war ensued, which led to an overall decline in the sales of air-conditioning products. Continuous rainy days and flooding in extensive areas in China during the peak season also seriously affected the air conditioner sales in the first six months of 2015. As a result, the group's sales volume and gross profit margins of its major air-conditioning products decreased during the period; and the production facilities of the group for copper tubes which commenced production in 2014.