Based on the preliminary review of the Group's unaudited management accounts for the six month period ended 30 June 2017 by the board ') of directors of the Zhejiang Tengy Environmental Technology Co., Ltd, the Board inform the shareholders of the Company and potential investors that as compared with the Group's unaudited profit attributable to equity holders of the Company of approximately RMB 58.0 million for the six-month period ended 30 June 2016, the Group is expected to record a significant decrease in profit attributable to equity holders of the Company for the Relevant Period. The reasons accounting for aforesaid decrease were twofold. First, with the convention of Group-of-Twenty (G20) Summit in the city of Hangzhou in September 2016, governmental authorities requested for temporary cessation of operations of various plants and factories in the vicinity. To avoid delay in the delivery of products in light of the foregoing circumstances and as agreed by the customers in advance, the Company kicked off certain projects earlier than scheduled which resulted in an increase in the recognisable revenue of the Group for the six-month period ended 30 June 2016. Second, the overall steel price in the PRC market recorded a significant increase in 2017 when compared to the preceding year. In order to retain a relatively promising level of gross profit margin and having taken into account the product delivery commitments as per the Company's standing contractual arrangements with various customers, the Company delayed the commencement of certain projects which then resulted in a drop of the recognisable revenue of the Group for the six- month period ended 30 June 2017. In addition, the Group's audited profit attributable to equity holders of the Company for 2016 was approximately RMB 113 million whereas the Group's profit attributable to equity holders of the Company throughout the year ended 31 December 2017 will still be subject to its business operation and cost management as well as the overall economic environment during the remaining period of the Relevant Year.