The board of directors of Changfeng Axle (China) Company Limited announced that on the preliminary review of the unaudited consolidated management accounts of the Group for the four months ended 30 April 2013, it is expected the Group may continue to record a loss for the six months ending 30 June 2013 in light of (i) the decrease in sales volume of the Group's axle components due to the weak market of medium and heavy duty truck; (ii) the continuing pressure on the gross margins of the Group's axle products under the continuous keen competition within the industry; and (iii) the increase in administrative and research and development expenses.