The board of the Directors informed the shareholders of Neo Telemedia Limited and potential investors that, based on the preliminary review on the unaudited consolidated management accounts of the Group for the year ended December 31, 2014 and the information currently available, the Group is expected to record an increase in loss attributable to owners of the Company of more than 50% for the year ended December 31, 2014 as compared to the loss recorded in the eighteen months ended 31 December 2013. The expected increase in loss was mainly because of (i) the aforesaid deconsolidation of CERNET Wifi; and (ii) an impairment loss on goodwill arose from the acquisition of HCH Investments Limited and its subsidiaries based on the preliminary valuation results which reflect the latest development of Hughes China Group's operations.