Ann: Corporate Governance Review & Corporate Governance Plan, page-45

Why did our revenue suddenly drop 32% ?

Jiameng blame it on competition and other major manufacturer.

The truth is more like Jiameng pissing off, the distributors and some of them dropped The XPD brand as pay back.

If you remember, back in may 2016 XPD issue 35 million shares to their distributors at price of 21 cents per shares. Not less than 12 months later, Jiameng when and put up the shares as collateral for 4 cents each.

If you were their distributors, buying shares at 21 cents. How would you feel about Jiameng action? That’s the real cause of revenue drop in 2017.

XPD will need to work very hard to re-gain the trust of their distributors again. They can start with replacing Jiameng.