The board of directors of Dongfang Electric Corporation Limited announced that, based on a preliminary review of the consolidated management accounts of the Company, the Group is expected to record a loss of approximately RMB 340 million of net profit attributable to the shareholders of the listed company for the six months ended 30 June 2016 as compared with a profit of RMB 168 million for the same period last year. The Board is of the view that the estimated decrease in the results for the Reporting Period is mainly due to the decrease in demand for power generation equipment in the market and the decline in product price caused by slowdown in growth of China's macro-economy, resulting in the decrease in gross profit margin and gross profit of the major products of the Company in the Reporting Period. In addition, as affected by the slowdown in the construction progress of certain power projects, the Company faced challenges in collection of the payment for products. Although the Company proactively adopted a series of measures to collect the payment for products, the aging of accounts receivable was still increased for wind power and other major products. Especially, the accounts receivable aged over five years increased rapidly. In accordance with the policies on provision for bad debts of accounts receivable consistently applied by the Company, the provision for bad debts of accounts receivable increased significantly in the Reporting Period.