The board of directors of Cosmo Lady (China) Holdings Company Limited announced that based on the preliminary assessment of the unaudited consolidated management accounts of the Group for the six months ended June 30, 2016, the Board estimated that net profit for the period would decrease by approximately 35% to 40% as compared to that of the corresponding period in 2015, mainly due to the more cautious consuming sentiment amid the slowdown in China's economic development; the surge of Micronet during the Period affecting both the company's sales and products supply from the Group's original equipment manufacturers; and the increase in overall operating expenses as a percentage of revenue.