The board of directors of the Tianjin Tianbao Energy Co., Ltd. announced the shareholders of the company and potential investors that, based on a preliminary review of the unaudited consolidated management account of the Group for the six months ended June 30, 2019, the Group is expected to record an after-tax profit of approximately RMB 7.1 million for the Review Period, representing a significant decrease of approximately 55% as compared to the same period of 2018. The Board considers the significant decrease of the profit for the Review Period is mainly attributable to (i) the reduction of the sales price of power grid in Tianjin by the Group due to the reduction in the electricity tariffs implemented in Tianjin Port Free Trade Zone since July 1, 2018 pursuant to the policy issued by the relevant PRC government authority; and (ii) the decrease in users' demand for steam and electricity in Tianjin Port Free Trade Zone during the first half of 2019.