China Oriental Group Co. Ltd. provided earnings guidance for the six months ended December 31, 2016. The board of directors of the company announced that based on a preliminary review of the group's unaudited consolidated management accounts for the ten months ended October 31, 2016 and information currently available to the board, the group expected to record a substantial decrease in net profit for the six months ended December 31, 2016 as compared with the net profit recorded for the six months ended June 30, 2016. However, the group is still expected to record a net profit for the year ended December 31, 2016 as compared with a net loss for the year ended December 31, 2015. Based on the information available to date, the expected substantial decrease in net profit of the group for the six months ended December 31, 2016 as compared with the net profit recorded for the six months ended June 30, 2016 is mainly attributable to, among other things, substantial impairment losses on certain fixed assets of the group due to the shutdown of certain production facilities of the group in October 2016 and anticipated further shutdown of certain production facilities of the group in 2017 in accordance with the assignments on resolving excess production capacity in the steel industry imposed by the government of the People's Republic of China, as further detailed in the company's announcement dated October 28, 2016.