The board of directors of Coolpad Group Limited provided preliminary unaudited consolidated earnings guidance for the year ending December 31, 2016. For the year, the company anticipated loss attributable to the owners of the company will be approximately HKD 3,000 million as compared to a profit attributable to the owners of the company of approximately HKD 2,325 million for the year ended December 31, 2015. Based on the analysis of the information available, the estimated loss for the year 2016 is primarily attributable to a decrease in sales by approximately 43% for the ten months ended October 31, 2016 as compared to that of the corresponding period in 2015. Based on the unaudited consolidated management accounts of the Group for the ten months ended October 31, 2016, the Group recorded a loss of approximately HKD 730 million from the principal business. The decrease in sales was mainly due to the downturn and fierce competition in the domestic smart phone market, and the Group only introduced one new smart phone product to the market in the second half of 2016 and has been focusing on the inventory clearance. The Group has been adjusting its business strategies with business restructuring and development of open retail channel. However, it still needs some time to achieve a marked improvement in the sales performance of the Group and an expected loss of approximately HKD 226 million for the ten months ended October 31, 2016 recorded the company due to the loss of Coolpad E-commerce attributable to company. The company shared 50.5% of the loss recorded by Coolpad E-commerce before April 22, 2016 and 25% after that date.