Baofeng Modern International Holdings Company Limited reported unaudited group sales results for the six months ended June 30, 2016. For the period, the sales of the group amounted to RMB 94.93 million, representing a decrease of approximately 10.2% when compared to the amount of approximately RMB 105.75 million for the corresponding period in 2015, which was mainly attributable to the decline in sales of own branded products during the reporting period.

The company provided group earnings guidance for the six months ended June 30, 2016. For the period, the group is expected to record a substantial increase in net loss before tax 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 December 10, 2015 and June 24, 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 December 16, 2015.