Phoenitron Holdings Limited provided earnings guidance for the year ended December 31, 2014. The Board announced the shareholders of the Company and potential investors that, based on the preliminary review of the unaudited consolidated management accounts of the Group for the year ended December 31, 2014 and the information currently available to the Board, the Board expects that a significant loss will be recorded in the audited consolidated results of the Group for the year ended December 31, 2014. The Board considers that the anticipated loss of the Group for the year ended December 31, 2014 is mainly attributable to (i) a significant impairment loss on the fair value of the derivative portion of the preferred shares of a joint venture; and (ii) a potential impairment loss on the amount due from the joint venture.

The pace of restructuring of Hota Group (as mentioned in the announcements of the Company dated December 16, 2013 & March 14, 2014 and the subsequent progress as disclosed in the announcements of the Company dated November 24, 2014 and February 4, 2015) was behind schedule and hence the business plan was postponed. The Board believes that the impairment losses should be taken for prudence sake (despite the Group would have recorded a profit for the Year 2014 had no such impairment losses been made). The Board to point out that the impairment loss mentioned is of non-cash nature and no material adverse effect is expected to be imposed on the Group's cash flow.