The board of directors of the Bao Shen Holdings Limited informed the shareholders of the company and potential investors that based on a preliminary review of the unaudited consolidated management accounts of the Group for the nine months ended 30 September 2019 currently available to the Board, the Group is expected to record a substantial decrease in its profit for the period and attributable to owners of the Company by approximately 90%, as compared with the corresponding period in 2018 mainly due to: the decrease in revenue of approximately RMB 5.6 million for the Period from RMB 68.6 million of the Corresponding Period, which mainly due to decrease in sales to the existing customers; and the decrease in government grants received in relation to the listing of the shares of the Company on GEM of approximately RMB 4.0 million.