The board of directors of C.P. Lotus Corporation informed the shareholders of the company and potential investors that based on a preliminary review of the unaudited consolidated financial information of the group for the period from January 2017 to April 2017, the company is expected to record a profit for the six months ending 30 June 2017, compared to a loss of RMB 63.9 million for the corresponding period in 2016. The change is mainly attributable to the significant reduction in store operating expenses and administrative expenses arising from the reduction in staff number at both the store and head office levels, improved productivity, the termination of third party cleaning and security services in certain regions and better utility usage management.