Coslight Technology International Group Limited provided consolidated earnings guidance for the year ended December 31, 2017. Based on the current information internally derived by the management, the Group has recorded a substantial increase in the unaudited consolidated profit for the year ended 31 December 2017 as compared with the audited consolidated profit for the corresponding period for the year ended 31 December 2016. The Board is of the view that the expected increase in the unaudited consolidated profit of the company for the year 2017 was primarily attributable to the following reasons: The shares of Zhuhai Coslight Battery Company Limited, a former subsidiary of the Company, were disposed in the mid-2017, resulting in a profit of approximately RMB 514,858,000. In accordance with accounting standards, an impairment provision of RMB 187,362,000 for the net receivables from one of the associated companies should be made by the Group. If the two aforementioned factors were not taken into account, the Group would record a decrease of more than 50% for the annual total comprehensive income for the year ended 31 December 2017 as compared to that for the year ended 31 December 2016. The reduction was mainly a result of lower profit contributions to the Group from the disposal of Zhuhai Coslight Battery Company Limited and gross profit margin dropped due to intense market competition as well as recurring expenses for the corresponding period failed to decline simultaneously.