Baofeng Modern International Holdings Company Limited reported sales results for the year ended December 31, 2014. For the year, the company reported total sales of RMB 200,969,000 compared to RMB 624,122,000 a year ago, representing a decrease of approximately 67.80%. The substantial decrease in sales was mainly due to the change of buying habit of Chinese to purchase luxury goods and national brands, and online purchase, since the China's economics boomed in recent years and the disposable income per person surged.

For the year ended December 31, 2014, the group is expected to record a substantial loss for the year ended 31 December 2014 as compared with the profit recorded by the group for the corresponding period in 2013. Such substantial loss is primarily attributable to the substantial decrease in sales for the year ended 31 December 2014 as compared with the corresponding period in 2013.