Baofeng Modern International Holdings Company Limited Reports Sales Results for the Six Months Ended June 30, 2018; Provides Unaudited Earnings Guidance for the Six Months Ended June 30, 2018
The group is expected to record an increase in loss before tax for the Reporting Period of approximately 40-50% as compared to loss before tax of approximately RMB 57.8 million for the corresponding period in 2017. This was mainly attributable to the fair value loss on convertible notes at fair value through profit or loss of approximately RMB 4.8 million during the Reporting Period, as compared to the fair value gain on convertible notes and warrants at FVTPL of approximately RMB 33.7 million during the corresponding period in 2017. The fair value loss on convertible notes at FVTPL is non-cash accounting treatment and has no effect on the cash flow for the Group's operation. The company is still in the process of preparing and finalizing the interim results of the Group for the Reporting Period. The information contained in this announcement is a preliminary assessment made by the Board based on the information currently available to the Group and such information has not yet been confirmed or reviewed by the audit committee of the company, and the actual results of the Group for the Reporting Period may be different from what are disclosed herein.