Fresh Express Delivery Holdings Group Co., Limited provided unaudited consolidated financial guidance for the year ended March 31, 2019. For the year, the company expected loss as compared with a profit for the corresponding period in 2018. The Board is of the view that the turnaround from profit to loss for the Current Period is as a result combining the following factors: The sales mode of the Group changed from a traditional offline physical wholesale food to a pure online sales which was based on sale on e-commerce platform and mobile applications. During the transition period, due to insufficient market share, the sales income decreased significantly; the Group expected to penetrate the market as soon as possible through low gross profit margin, in order to increase market share, which led to a decline in gross profit; Due to insufficient market share, it has not been able to achieve large purchase, resulting in failure to obtain higher purchase discounts and increasing procurement cost; and The Group disposed its subsidiaries to an independent third party resulting in a loss, the losses mainly contributed by the realization of translation reserve opening balance.