The board of directors of Cosmos Machinery Enterprises Ltd. that, based on the preliminary review of the unaudited consolidated management accounts of the group for the six months ended 30 June 2014, the group is expected to record an increase of approximately 35% in loss attributable to the equity holders of the company when compared to that of the corresponding period in 2013. Based on the relevant information currently available, the Board considers that such loss were mainly attributable to the market demand of machineries in China had been slowing down in the first half of 2014, as a result of which the net loss of the machinery manufacturing segment increased significantly as compared to that for the corresponding period in 2013, which also substantially cancelled out the significant increase in operation profits (after minority interest) of the printed circuit board segment; and the increase in rent of office and staff cost at an aggregate amount of approximately HKD 3.5 million as compared to that for the corresponding period in 2013.