China Water Industry Group Limited provided earnings guidance for the six months ended 30 June 2015. The group is expected to record a substantial increase in the net profit for the six months ended 30 June 2015 of not less than 240% as compared to the corresponding period in 2014 of HKD 61.78 million. Comparing with prior corresponding period, the principal factors underlying the increase of expected net profit include, among others, reversal of impairment loss on associate and a fair value gain on financial assets at fair value through profit or loss.

As the board is unable to ascertain the pricing trend of the relevant financial assets, in view of the recent volatile stock market performance, the board envisages pressure on the group's profitability generated by the change in fair value of the relevant financial assets in the second half of 2015.