Chanjet Information Technology Company Limited provided earnings guidance for the year ended March 31, 2016. The board of directors of the Company informs the company's shareholders and potential investors that based on preliminary estimates of the unaudited consolidated management accounts of the Group, the Group expects to record a net loss for the three months ended March 31, 2016. The net profit attributable to the shareholders of the parent company for the three months ended March 31, 2016 is expected to decrease by approximately 140% to 170% as compared to the net profit attributable to the shareholders of the parent company for the same period of 2015.

The net profit attributable to the shareholders of the parent company for the same period of 2015 is RMB 29.03 million. The Board considers that the expected net loss of the Group for the three months ended March 31, 2016 and the expected decrease of the net profit attributable to the shareholders of the parent company as compared to that for the same period of 2015 are mainly due to: the initial grant under the employee trust benefit scheme was completed on June 16, 2015 of the Group. The cost of the employee trust benefit scheme of the Group for the three months ended 31 March 2016 would be included in the consolidated income statement.

Without considering the cost of the employee trust benefit scheme, the net profit attributable to the shareholders of the parent company for the three months ended March 31, 2016 is expected to decrease by approximately 10% to 40% as compared to that for 2015. The R&D costs for continuous improvement and the operation promotion expenses of the cloud service business continued to increase.