Jinheng Automotive Safety Technology Holdings Ltd. announced that based on the preliminary review of the unaudited consolidated management account of the Group for the year ended December 31, 2014, the Group is expected to record a significant increase in its net loss for the year ended December 31, 2014 as compared to that for the year ended December 31, 2013, which was mainly attributable to (i) decrease of gross profit due to the production inefficiency of the plant in Tianjin; (ii) increase of administrative expenses due to the written-off of certain long-aged receivables; (iii) loss on disposal of subsidiaries and (iv) allocation of more resources for exploring new business opportunities.
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