Baofeng Modern International Holdings Company Limited provided earnings guidance for the six months ended June 30, 2012. For the period, the company expected to experience a substantial decline in its net profit for the six months ended June 30, 2012 as compared with that for the corresponding period of 2011, which is mainly attributable to an expected loss on fair value change due to the recognition of convertible notes and warrants at fair value in accordance with the International Financial Reporting Standards by the company during the six months ended June 30, 2012.