Comtec Solar Systems Group Limited provided earnings guidance for the year ended December 31, 2015. The board of the Company inform's the shareholders and potential investors of the Company that, the Company expects to record a net loss of over RMB 400 million for the year ended December 31, 2015, as compared to a net loss of approximately RMB 90.5 million for the corresponding year ended December 31, 2014. According to the analysis of the Company's management based on the information currently available, the anticipated net loss was primarily attributable to (i) impairment losses on advance to suppliers of approximately RMB 152.8 million; (ii) a gross loss of approximately RMB 94.4 million, which was primarily attributable to (a) the decrease in revenue due to the decrease in the average selling prices of wafers and polysilicon during 2015; and (b) the write-down of the Group's inventory of approximately RMB 112.7 million due to the decrease in the market prices of solar wafers and polysilicon; (iii) recognition of share-based payment expenses of approximately RMB 57.1 million; (iv) losses from disposal of outdated production equipment of approximately RMB 35.6 million; and (v) net exchange loss of approximately RMB 21.8 million.

The anticipated net loss is mainly attributable to certain non-cash items charged for the year ended December 31, 2015. The Company would also like to inform the shareholders and potential investors that despite the anticipated net loss, from the perspective of cashflow from operating activities, the Company has improved from a net cash outflow of approximately RMB 133.9 million for the year ended December 31, 2014 to a net cash inflow from operating activities of approximately RMB 82.4 million for the year ended December 31, 2015.