The board of directors of Guangdong Tannery Ltd. announced that based on the current estimate of the company' management, the unaudited consolidated net loss of the Group for the six months ended 30 June 2016 is expected to increase by over 60% as compared with the consolidated net loss of HKD 13.126 million for the corresponding period in 2015. Such increase in the consolidated net loss was mainly due to the following factors: a decrease in turnover of the Group brought about by the decrease in sales volume and sales price as a result of the continually shrink in footwear leather market demand in general; a significant drop in gross profit mainly attributable to the decrease in selling price of products being greater than that in unit cost, resulting in the significant decrease in gross profit margin of the Group; and an impairment loss of property, plant and equipment is further made.