The board of directors of Newtree Group Holdings Limited announced that the group is expected to record a substantial loss for the year ended March 31, 2015 as compared to that of last year. Based on the information currently available to the Group and preliminary review of the unaudited consolidated financial information of the Group for the year ended March 31, 2015, the substantial Loss is primarily attributable to the non-cash impairment loss on goodwill arising from the acquisition of DigiSmart (Group) Limited of approximately HKD 29 million mainly as a result of the increase in the company's share price which led to an increase in the fair value of the consideration shares as at the date of completion of the acquisition; the impairment losses on trade receivables of not less than HKD 106 million mainly due to certain customers with prolonged delay in repayment which casts doubts on their recoverability; the non-cash impairment losses on other intangible assets of approximately HKD 12 million, mainly as a result of decrease in estimated future profitability of the Group's coal trading and methyl tertiary butyl ether trading businesses, of which approximately HKD 6 million was reported and disclosed in the company's interim report 2014/2015; the effective interest expenses on convertible bonds issued by the company of approximately HKD 16 million; and the increase in administrative expenses, of approximately HKD 64 million, mainly due to the increase in acquisitions and business development activities and staff costs.