China National Culture Group Limited announced audited consolidated earnings results for the year ended March 31, 2014. For the year, the company reported loss attributable to owners of the company from continuing operation was HKD 191,727,000 on turnover of HKD 2,951,000 compared to loss attributable to owners of HKD 87,282,000 on turnover of HKD 6,677,000 for the corresponding period last year. Loss before taxation was HKD 189,913,000 compared to loss before taxation of HKD 88,316,000 for the same period a year ago.

Loss from operating activities was HKD 163,495,000 against HKD 70,523,000 of prior year period. Basic and diluted loss from continuing operation was 5.18 cents against 0.98 cents a year ago. Loss for the year was HKD 203,701,000 or 5.51 cents per basic and diluted share compared to loss of HKD 90,915,000 or 1.01 cents per basic and diluted share a year ago.

The decreases in turnover and gross profit in the current year were mainly due to unsatisfactory paid subscribers growth and decrease in customers of high profit margin respectively. The significant increase in loss attributable to the owners of the company as compared with last year was mainly due to several reasons. In addition to the decrease in turnover there were one-off gains in 2013 on early extinguishment of promissory notes amounted to HKD 29,041,000 accounted for as other income and on disposal of subsidiaries amounted to HKD 25,930,000.