Baofeng Modern International Holdings Company Limited provided earning guidance for the year ended 31 December 2016. For the year, the group's unaudited management accounts for the year ended 31 December 2016, the sales amounted to RMB 215.7 million, representing an increase of approximately 25.6% when compared to the amount of approximately RMB 171.7 million for the corresponding period in 2015. In 2016, the Group has successfully applied the graphene technology and launched a new graphene-based sterilizing foam material product. As the New Product has received the market recognition, the sales performance has improved in the second half of 2016 despite the slow-down of China's economic growth. Also, an increase in the gross profit margin for the Reporting Period is expected after the application of the graphene technology and the commencement of the sale of the New Product, when compared with that in 2015. The Group is expected to record a substantial increase in net loss before tax for the reporting period as compared to the corresponding period in 2015, which is mainly attributable to share-based payment expenses in relation to the share options granted by the Company on 10 December 2015, 24 June 2016 and 16 December 2016 and amortisation expense of intangible assets in relation to the acquisition of the one patent in the United States of America, the four invention patent applications, three utility model patent applications and two utility model patents in the PRC and the exclusive formula from Bluestone Technologies (Cayman) Limited on 16 December 2015. The share-based payment expenses and the amortisation expense of intangible assets are non-cash accounting treatment and have no effect on the cash flow for the Group's operation.