The board of directors of Tiangong International Company, Limited announced that, based on a preliminary assessment by the management of the Group on the unaudited consolidated management accounts of the Group for the five months ended 31 May 2016, the company expects to record a significant decline in the Group's profit for the six months ended 30 June 2016 as compared to the same period in 2015. The decline was primarily attributable to the weak global economic growth during the Period, leading to the decrease in demand; and the relatively low average selling price of the Group's products after the negative impact on steel products during the year 2015, which is yet recovered to the average selling price level of the same period in 2015.