The Board of Ausnutria Dairy Corporation Ltd. announced that, based on the currently available information, it is anticipated that the Group will record a profit attributable to the Shareholders of approximately RMB 100.0 million for the three months ended 31 March 2018, representing an increase of approximately RMB 35.0 million or approximately 53.8% when compared with the corresponding figure of RMB 65.0 million for the three months ended 31 March 2017. The sales of the Group for quarter are anticipated to increase by approximately 56.8% to approximately RMB 1.2 billion when compared with first quarter of 2017. During the review period, the Group incurred some one-off expenses in relation to product distribution and quality control totaling approximately RMB 56.8 million. As a result, the profit attributable to the Shareholders has been reduced by approximately RMB 42.6 million to approximately RMB 100.0 million after taking into account the corresponding tax impact. The Board believes that the improvement in the Group's financial performance was mainly attributable to (i) the continuous fine tuning of the strategic plans of the Group's core business, the own-branded formula milk products; (ii) the product differentiation, particularly the success in goat milk formula and organic infant formula; (iii) the improvements in the Group's sales network; (iv) the increased public recognition of the high-quality standards ofinfant formula produced by the Group; and (v) the clear brand positioning which allowed the Group to penetrate different sectors and cater effectively to different market demands.