Shunfeng International Clean Energy Limited provided earnings guidance for the second half and full year ended December 31, 2016. The board of directors informed the shareholders and potential investors of the company that although the Group recorded a profit of approximately RMB 54.5 million for the first half of 2016, based on the preliminary assessment with reference to the information of the Group currently available (including the unaudited consolidated management accounts of the Group for the ten months ended 31 October 2016), the Group is expected to record a loss for the second half of 2016; therefore, it is expected that the Group will record an accumulated loss for the year of 2016. It is expected that the Group will record a loss of approximately RMB 923 million for the year ended 31 December 2016, as compared to a profit of approximately RMB 58.0 million for the year ended 31 December 2015, and is mainly attributable to the following reasons: (i) despite the volume of electricity generated by the Group increased as a result of an increase in the total on-grid scale for power generation, the continued circumstance where use of electricity is limited throughout the Year 2016 in the provinces and regions where the power plants of the Group are located (including Xinjiang, Gansu and Qinghai of the People's Republic of China (the "PRC")) resulted in an estimated loss of approximately 600,000,000 kWh in terms of power generation volume and approximately RMB 480 million in revenue of the Group for the Year 2016 from power generation; (ii) the Group continuously obtained loans and financing from financial institutions to develop its solar power generation business. As a number of newly constructed solar power plants commenced operation in the Year 2016, the Group ceased the capitalization of a portion of interest expenses related to the construction of such solar power plants in the Year 2016. As a result, the finance costs of the Group in the second half of 2016 is expected to increase approximately 8.4% as compared to the first half of 2016, and is expected to accumulatively increase approximately 35% or RMB 245 million for the Year 2016 as compared to the Year 2015; (iii) the Group completed the acquisition of 63.13% of the equity interests in Suniva Inc. in October 2015 which became a joint venture of the Group. It is expected that the Group will share the loss of Suniva Inc. in the amount of approximately RMB51.5 million in the second half of 2016 and approximately RMB 113 million for the Year 2016 accumulatively, while the loss recorded for the Year 2015 was approximately RMB 13 million; (iv) the Group completed the acquisition of 59% of the equity interests in Lattice Power Corporation in August 2015 which became an indirect non-wholly owned subsidiary of the Company. Lattice Power Corporation faced severe market competition and incurred substantial research and development expenses and is expected to record an additional loss of approximately RMB 35 million for the second half of 2016 and is expected to record an accumulated loss of approximately RMB 135 million for the Year 2016, while a profit of RMB35 million was recorded for the Year 2015. In addition, it is expected that Lattice Power Corporation will face uncertainties in the future. Based on the preliminary assessment by the management and the preliminary discussion with an independent valuer, the Group intends to recognise an impairment of approximately RMB 200 million for its investment in Lattice Power Corporation for the Year 2016. Such impairment provision is subject to confirmation and audit, while there was no such provision in the Year 2015; (v) the Group recorded RMB 430 million non-recurring income from reversal of bad debts previously written off in the Year 2015, but it is expected that the Group will only record approximately RMB 59 million non-recurring income from reversal of bad debts previously written off in the Year 2016; (vi) it is expected that the Group will record a loss from bad debts of approximately RMB 160 million for the Year 2016, while the loss for the Year 2015 was only RMB 33 million.