The board of directors of China High Speed Transmission Equipment Group Co., Ltd. announced that based on the company's preliminary review of the consolidated management accounts of the Group for the year ended December 31, 2012, which have not yet been reviewed nor audited by the
company's auditors, the profit of the group is expected to record a significant decrease as compared to that for the previous year. Such significant decrease in profit is mainly attributable to increase in selling, administrative and finance costs.