Dongfang Electric Corporation Limited provided preliminary consolidated earnings guidance for the year ended December 31, 2016. The board of directors of the company hereby informs the shareholders and potential investors of the company that, based on a preliminary review of the consolidated management accounts of the company, the group is expected to record a loss of net profit attributable to the shareholders of the listed company in the range of approximately RMB 1.7 billion to RMB 2.2 billion for the year ended 31 December 2016 as compared with a profit of RMB 439 million for the same period last year. The estimated decrease in the results for the year ended 31 December 2016 is mainly due to: the decrease in demand in the industry of power generation equipment and the decline in product price caused, resulting in a decrease in gross profit margin for the year as compared to last year. A substantial loss was recorded in the wind power contracts undertaken by the group in the previous reporting period, mainly because of a rise in age of accounts receivable resulting in increase in provision for bad debts of accounts receivable for the year, and an increase in operation and maintenance expenses in the warrant period. The group further implemented its internal reform and carried out streamlining plan in the year, resulting in an increase in provision for resignation benefits; and devoted greater efforts to clear the inventory under the guidance of 'relaxation of overcapacity and reduction of inventory', resulting in an increase in provision for write-down as compared to last year.