The board of Meike International Holdings Limited announced the shareholders of the company and potential investors that after a preliminary review on the Group's unaudited consolidated management accounts for the year ended December 31, 2013, the group is expected to record a more substantial loss for the year ended December 31, 2013 as compared to the loss recorded for the year ended December 31, 2012. domestic demand is still stagnant, competition within the sportswear industry in China is still intensive, deep discount and intensive promotional sales of the major local brands had adversely affected the sales of the Group; the Group has cleared up the excessive slow-moving and aged inventories through certain independent export companies with deep discount; the Group has reduced the distributors' volume sales orders for the year and further discounts have been given by the Group to its distributors for both footwear and apparels; and the number of outlets of distribution networks decreased from approximately 1,197 in December 2012 to approximately 562 in December 2013.