MOBI Development Co., Ltd. provided group earnings guidance for the full year ended December 31, 2017. The board of directors to informed the shareholders of the company and potential investors that the group is expected to record a reduction of over 80% in its consolidated net profit for the twelve months ended 31 December 2017 as compared to the corresponding period in 2016. The reduction in the Group's net profit was mainly attributable to the following reasons: The announcement of the tender results of China Mobile's Narrowband Internet of Things procurement was delayed to the fourth quarter. Given Chinese operators' sales model of "purchase on credit first and contract after", part of the purchase price received for the relevant shipment could not be recognized as revenue for 2017; Intensified market competition in 2017 led to a further decrease in selling price, which in turn led to a decrease in gross profit margin; Administrative expenses and research & development costs increased as compared to the corresponding period in 2016. In order to meet the business demand of global customers, the Company significantly increased efforts in new pipeline projects in 2017, increasing the scale of the research & development team and thus incurred significantly more research expenses. As it takes time for a research project to go through the cycle from initial development to sales generating profit, it is expected that opportunities will arise in future; and in order to improve inventory turnover and prepare for 5G development, the Group negotiated the sale of some of its existing inventories at a discount with its customers, which may lead to an increase in the impairment of inventories.