The board of directors of Dachan Food (Asia) Limited informed the shareholders and potential investors of the company that, based on the information currently available to the Board and the result of the preliminary review of the unaudited management accounts of the Group for the year ended 31 December 2015, the company expects that the loss attributable to shareholders will be in the range between RMB 115 million and RMB 160 million for the year ended 31 December 2015. The Board considers that an increase in loss for the year ended 31 December 2015 as compared to the same period last year is mainly due to: a significant exchange loss generated from the domestic USD loan of the Company resulting from a sharp decrease in RMB exchange rate against USD during the reporting period; a loss caused by the making of provision for asset impairment for the electrical slaughtering facilities being shut down following the shut down of certain electrical slaughterhouse as a result of the Company's timely adjustment of business structure and reduction of electrical slaughtering capacity in response to the market condition of overcapacity in domestic electrical slaughtering of broilers and limited profitability of chicken processing industry.