Vital Mobile Holdings Limited provided earnings guidance for the six months ended 30 June 2018. Based on the information currently available to the Board and the preliminary assessment of the Group's unaudited consolidated management accounts for the six months ended 30 June 2018 (the "Management Accounts"), it is currently expected that the Group will record a net profit of approximately RMB 9.5 million for the six months ended 30 June 2018 as compared to a net loss of RMB 42.1 million for the six months ended 30 June 2017 and an increase in the Group's revenue from RMB 27.5 million for the six months ended 30 June 2017 to approximately RMB 433.4 million for the corresponding period in 2018 together with an improvement from a negative gross margin of RMB 14.4 million to an expected positive gross margin of approximately RMB 9.6 million correspondingly. The improvement in the Group's results for the six months ended 30 June 2018 was attributable to: the improvement in sales for branded smartphone for the six months ended 30 June 2018; and a combined effect contributed by (a) an one-off reversal of bad debts provision in the amount of approximately RMB 6.2 million for the six months ended 30 June 2018; (b) an increase in interest income of pledged bank deposits and bank deposits of the Group from RMB 4 million for the six months ended 30 June 2017 to approximately RMB 7.5 million for the corresponding period in 2018 primarily due to better interest rate being offered; and (c) a turnaround to an exchange gain for the six months ended 30 June 2018 as compared to an exchange loss for the correspondingly period in 2017.