Bisu Technology Group International Limited provided earnings and Impairment of Goodwill guidance for the six months ended 30 June 2018. Based on the information currently available to the Board, the Group is expected to record a loss for the six months ended 30 June 2018 as compared to a profit for the six months ended 30 June 2017. Such result is primarily attributable to the factors that the gross profit is recorded a significant decline to approximately HKD 9.2 million for the six months ended 30 June 2018 as compared to the six months ended 30 June 2017 amounted approximately HKD 80.6 million, which was due to a decline of approximately 43% in revenue primarily due to the reduction of revenue generated from automotive engines business as disclosed in the Announcement; and the provision of impairment on goodwill in relation to the acquisition of the Automotive Engines Business in February 2016 is provided.

Such impairment loss is primarily attributable to the fact that the financial performance of Automotive Engines Business is less than expected for the six months ended 30 June 2018. Therefore, impairment of goodwill is recorded for the six months ended 30 June 2018. The amount of the goodwill impairment is estimated to be in the range of HKD 160 million to HKD 200 million.