The Board of Ko Yo Chemical (Group) Limited informed shareholders and potential investors of the Company that, although the administrative expenses was decreased for the six months ended 30 June 2019 as compared to that of the same period last year, due to the increase of price the raw material of natural gas, and the market prices of urea, methanol and ammonia were decreased as compared with last year, especially there are large drop in price for products of methanol and ammonia, which in turn leads to the operating gross profit of the Group was greatly decreased and the provision made from the valuation loss of convertible bonds issued as stated in the announcements dated 31 January 2019 and 15 March 2019, the Board expects that the Group will record a loss in the first half of the financial year of 2019.