The Board of Cosmopolitan International Holdings Ltd. informed the holders of the securities of and potential investors that, based on the preliminary review by the company's management on the unaudited consolidated management accounts of the Group for the financial year ended December 31, 2015, it is expected that the Group will record a substantial increase in its net loss as compared to that recorded for the financial year ended December 31, 2014. The expected increase in net loss is primarily due to the recognition of (i) a fair value loss on derivative financial instruments relating to the Subscription option for the subscription of the optional convertible bonds 2017, and (ii) an impairment loss on certain property under development in the PRC.