The board (the "Board") of directors (the "Directors") of Best Food Holding Company Limited informed the shareholders (the "Shareholders") and potential investors of the Company that, based on the preliminary review of the unaudited consolidated management accounts of the Group for the six months ended 30 June 2019 (the "Period"), it is expected to record a significant increase in the loss attributable to equity holders of the company for the Period as compared to that for the corresponding period in 2018. Based on the information currently available to the Board, the Board considers that such expected increase in loss was mainly attributable to, among other things: Increase in interest expenses, which mainly due to the fact that convertible bonds, issued on 23 November 2018, have not yet been fully converted, resulting in higher interest expenses; and In the first half of 2019, "HHG" and "New Spicy Way", being controlling food and beverage brands under the Group, have adopted adjustment measures in various aspects, including, among others, quality enhancement, branding upgrade, franchise and channel expansion, supply-chain reforms and incentive system refinement. However, in respect of the joint-stock food and beverage brands of the Group, as they are subject to certain limitations on scale and experiencing the high-speed growth period, there are relatively large amount of inputs during the transitional phase for long-term growth and scale expansion, as well as exploring for new models of operation. As such, such brands have not yet been able to contribute to the profits of the Group, but even recorded losses.