The Board of Directors of Daohe Global Group Limited provided earnings guidance for the six months ended October 31, 2017. For the period, the Group expected to record total comprehensive loss of not less than USD 67 million as compared to total comprehensive income of approximately USD 2.1 million recorded for the six months ended October 31, 2016, mainly as a result of impairment loss on goodwill of approximately USD 55.2 million in relation to the acquisition of Loovee Holdings Inc.

The company expected impairment loss on goodwill of approximately USD 13.6 million allocated to the sales of merchandise for the six months ended October 31, 2017. The Board would like to emphasize that the above impairment losses on goodwill are non- cash items and are one-off charges to the company's consolidated interim statement of profit or loss. Such impairment losses are not expected to impact the Group's daily operations and cash flow.