The board of directors of the Zheda Lande Scitech Ltd. announced that, based on its initial assessment of the unaudited consolidated management accounts of the Group, the Group is expected to record a substantial increase in net loss attributable to owners of the Company for the year ended 31 December 2014 as compared to net loss attributable to owners of the Company of RMB 758,000 for the year ended 31 December 2013. Based on the relevant information currently available to the Company, the Board considers that the anticipated increase in net loss attributable to owners of the Company for the year ended 31 December 2014 was mainly attributable to a decrease in turnover of all business segments of the Group due to intensified competition of the market.