The board of directors of China HealthCare Holdings Limited informed the shareholders of the Company and potential investors that based on preliminary review of the unaudited consolidated management accounts of the Group, it is expected that the Group will record a loss for the year ended 31 March 2014 as compared to a profit recorded in the year of 2013. The loss for the year ended 31 March 2014 was mainly attributable to significant decrease in gain from the extinguishment of liability component of redeemable convertible preference shares during the year. The Company is still in the process of finalising the Group's unaudited annual results for the year ended 31 March 2014.