Jia Yao Holdings Limited provided consolidated earnings guidance for the six months ended June 30, 2015. The board of directors of the company, after a preliminary review on the group's unaudited consolidated management accounts for the six months ended 30 June 2015, the group expects that, without taking into account the one-off listing expense of approximately RMB 19.6 million incurred during the six months ended 30 June 2014, the group will record a substantial decrease of approximately 71.3% in net profit after tax to approximately RMB 4.9 million for the six months ended 30 June 2015 as compared to the net profit after tax of approximately RMB 17.1 million for the six months ended 30 June 2014 (after inclusion of the said listing expense, the Group recorded a net loss after tax of approximately RMB 2.5 million for the six months ended 30 June 2014). The aforesaid decrease in net profit after tax is mainly due to the decrease in gross profit and gross profit margin because of the lower production efficiency on the new production line of handmade products (including both paper cigarette packages and social product paper packages); the increase in overall production costs during the first half of 2015; the increase in research and development expenses; and the increase in the company's regulatory compliance expenses.