The board of directors of Baofeng Modern International Holdings Company Limited announced preliminary assessment of the Group's unaudited management accounts for the year ended 31 December 2017, the sales of the Group for the Reporting Period amounted to approximately RMB 125.50 million, representing a decrease of approximately 41.9% when compared to the sales of approximately RMB 215.83 million for the corresponding period in 2016, which was mainly attributable to the decline in sales of Original Equipment Manufacturer business during the Reporting Period. As the slippers retail industry experiences stiff competition from online retailers, some overseas customers try to scale back their shops and control the stock level, resulting in a decrease in quantity ordered and delay of placing orders, and so the sales of OEM business declined in the Reporting Period.