China Mengniu Dairy Company Limited provided group earnings guidance for the year ending 31 December 2016. The company announced that, based on information currently available to the group's management, it is expected that the profit attributable to owners of the company will record a substantial loss for the year ending 31 December 2016, which is mainly attributable to the factors: (i) Yashili International Holdings Ltd, a subsidiary of the group, is expected to record a loss for the year ending 31 December 2016, and after giving due consideration to the operating condition and financial performance of Yashili in recent years, the group will recognize an impairment provision against the goodwill recorded in the related milk powder products business in this year; (ii) for the purpose of working capital management, the group has been striving to optimize its raw milk powder inventory level by various measures, including selling excessive quantity at market price, thereby resulting in a loss; and (iii) a significant associated company of the company is expected to record a loss for the year ending 31 December 2016 and the company will correspondingly record a share of losses from associated companies.