The board of directors of China Dredging Environment Protection Holdings Limited informed the shareholders of the company and potential investors that, based on the preliminary assessment of the group's unaudited management accounts for the year ended 31 December 2014 and the information currently available to the board, the group expects to record a decrease in net profit for the year ended 31 December 2014 as compared to that for the year ended 31 December. The decrease in revenue was mainly due to the slow-down of the progress of construction of certain dredging projects. The decrease in net profit was also attributable to the following factors: the increase in the production costs and administrative expenses of the group as a result of the increase in the level of average salary of employees of the group; the increase in fixed expenditure of the group such as depreciation expense due to an increase in equipments including dredging vessels; and the increase in finance costs.