Jia Yao Holdings Limited provided earnings guidance for the six months ended 30 June 2019. The board of directors of the company informed the shareholders of the company and potential investors that based on the information currently available to the management of the company, the group is expected to record a net loss after tax for the six months ended 30 June 2019 as compared with the net profit after tax with the corresponding period last year. The net loss after tax for the six months ended 30 June 2019 will range from approximately RMB 6.5 million to approximately RMB 9.5 million, representing an decrease of approximately RMB 24.8 million to RMB 27.8 million, as compared to the net profit after tax of approximately RMB 18.3 million for the six months ended 30 June 2018. The aforesaid increase in net loss after tax is mainly due to (1) decrease in gross profit because of increasing costs of major raw materials during the six months ended 30 June 2019; and (2) the recognition of fair value loss on convertible notes of approximately RMB 3.1 million during the six months ended 30 June 2019 (the recognition of fair value gain on convertible notes of approximately RMB 8.4 million during the six months ended 30 June 2018).