The board of directors of China 33 Media Group Limited informed the shareholders of the Company and potential investors that based on the preliminary assessment by the Board of the financial information of the Company currently available and the unaudited consolidated management accounts of the Group for the year ended 31 December 2013, which has neither been reviewed by the audit committee of the Company nor audited by the auditors of the Company, the Group is expected to record a loss for the year ended 31 December 2013. The Board believes that the loss was mainly attributable to significant decrease of revenue for the year ended 31 December 2013 as a result of the halt of distribution of two periodicals (Passengers and Resources) in January 2013 after the Group's publishing partner of these two periodicals chose not to participate in the public tendering of their distribution right on passenger trains in the PRC. Also, the results of the Group may be further affected by a possible provision for impairment in respect of certain account receivables, prepayments and deposits based on the management's assessment of the low likelihood of their recoverability.