Synertone Communication Corporation provided earnings guidance for the six months ending September 30, 2015. For the period, the board of directors of the company informed the shareholders and potential investors of the company that, based on the preliminary review of the unaudited management accounts of the Group for the four months ended July 31, 2015, unaudited consolidated turnover for the five months ended August 31, 2015 and the information currently available to the board, it is expected that the Group will record a substantial loss for the six months ending September 30, 2015 as compared to the profit for the corresponding period of last year. The board believes that such expected loss was primarily attributable to the adjustment of State policy and macro-economic fluctuation; and the adjustment to the Synertone 1 satellite system business to accommodate market changes and to meet the changing needs of customers.

It is expected that turnover arising from the Group's overall business (including Synertone 1 satellite system business) will have a significant drop as compared to the corresponding period of last year. Given that Synertone satellite system's leasing costs was rather fixed, it is expected that the Group's overall business will record a substantial loss. The Group will ensure its operations and business development through continuous cost reduction and efficiency enhancement and tighter risk control as well as the adjustment to the Group's businesses in stages.

As the Board anticipates that the remaining period for the six months ending September 30, 2015 will continue to be affected by the above factors, it is expected that the Group will record a substantial loss for the six months ending September 30, 2015 as compared to the profit for the corresponding period of last year.