The board of directors of Austar Lifesciences Limited announced that, based on information currently available, the group is expected to record a substantial reduction of approximately 80% to 95% in consolidated profits attributable to the shareholders of the company for the year ending December 31, 2015, as compared with the corresponding period in 2014, mainly attributable to (i) prolonged execution time for certain projects undertaken by the group during the period resulting in a decrease in revenue and a lowered gross profit margin as compared with the corresponding period in 2014; and (ii) certain projects with a relatively lower gross profit margin being undertaken by the group during the period for the purpose of
retaining customers.