Baofeng Modern International Holdings Company Limited reported sales results for the year ended December 31, 2015. For the period, the sales of the group amounted to RMB 171.66 million, representing a decrease of approximately 12.8% when compared to the amount of approximately RMB 196.78 million for the corresponding period in 2014.

The company provided earnings guidance for the year ended December 31, 2015. For the period, despite the substantial increase in gross profit of the principal business of the group, the group is expected to record a net loss before tax for the reporting Period, which is mainly attributable to: share-based payment expenses in relation to the share options granted by the company on 10 December 2015; amortization expense of intangible assets in relation to the acquisition of the one patent in the United States, the four invention patent applications, three utility model patent applications and two utility model patents in the People's Republic of China and the exclusive formula from Bluestone Technologies (Cayman) Limited on 16 December 2015; and the expected substantial increase in fair value loss on warrants that the Group is required to make under the mark-to-market accounting principle.