BAIC Motor Corporation Limited informed the shareholders and potential investors of the company that, based on the preliminary review of the management accounts of the Group for the six months ended 30 June 2017, the net profit attributable to the equity holders of the company for the six months ended 30 June 2017 is expected to decrease by approximately 60% as compared with the corresponding period in 2016. The company believes that the decrease in the results was mainly due to the intensifying competition in the PRC's passenger vehicle industry and the overall sluggish Korean vehicle market during the first half of 2017, which resulted in the decline in the sales of Beijing Hyundai and Beijing Brand as well as the decrease in the results, and in turn led to the decrease in profits of the Group.