The board of directors of Bio-Dynamic Group Limited informed the shareholders of the company and potential investors that the expected results of the group for the year ended December 31, 2012 may show a substantial increase in loss as compared to last year. The increase in loss was mainly due to the increase in loss of the group's ethanol business resulting from the temporary suspension of the group's ethanol production facility from February 2012 to October 2012, and impairment of certain intangible assets and property, plant and equipment as the present value of the future cash flows expected to be derived from these assets based on their existing use may be less than their carrying value.