Fufeng Group Limited provided earnings guidance for the six months ending June 30, 2018. For the period, consolidated net profit is expected to decrease significantly as compared to the consolidated net profit for the six months ended 30 June 2017. Despite the expected lower profit for the six months ended 30 June 2018 compared with the corresponding period of last year due to the cyclical fluctuation in raw material costs, the Board still expects the Group to be profitable for the six months ended 30 June 2018 and considers that the Group's overall financial position to be healthy and the Board remains positive on the long term prospect of the Group. The Board believes that the Group's interim results was mainly affected by (i) the significant increase in raw material costs such as corn kernel costs and coal costs during the five months ended 31 May 2018 as compared to the same period in 2017. Average corn kernel costs increased from approximately RMB 1,270 per tonne to approximately RMB 1,440 per tonne (or approximately 13.4%) whilst average coal costs increased from approximately RMB 201 per tonne to approximately RMB 232 per tonne (or approximately 15.4%) from the five months ended 31 May 2017 to the same period in 2018; and (ii) whilst, such increase in costs was not passed on resulting in the selling price of the key products including the monosodium glutamate ("MSG") not being raised accordingly. Such factors resulted in a significant decrease in the gross profit margin of those relevant products.