The board of directors of China Primary Resources Holdings Limited announced to the shareholders of the company and potential investors that due to (i) significant decrease in turnover for the year ended December 31, 2013; and (ii) anticipate impairment provision of inventories, the Group is expected to continue to record loss for the year ended December 31, 2013 as compared to the corresponding period of last year. The reason of the significant decrease in turnover is certain customers of the Group had postponed their purchase order to later part of 2013 and 2014 during the year under review. Such decrease in turnover has in turn affected the liquidity of inventories.