Zhejiang Yonglong Enterprises Co. Ltd. provided earnings guidance for the year ended December 31, 2014. After preliminary assessment on the unaudited management accounts of the company, the board of directors of the company informed the shareholders of the company and potential investors that the company is expected to record a loss after taxation of approximately RMB 7.98 million as compared with the audited profit after taxation of approximately RMB 43.70 million for the year ended December 31, 2013.

Such expected loss was mainly attributable to finance cost in respect of the estimated imputed interest in non-current interest-free amount due to ultimate holding company for the year ended December 31, 2014 of approximately RMB 24.65 million and there was significant drop of other income and gains of approximately RMB 42.31 million for the year ended December 31, 2014 as there was a significant gain on disposal of land and buildings of the old factory of the company to the Local Government for the year ended December 31, 2013 of approximately RMB 44.87 million.