The board of directors of Kai Shi China Holdings Company Limited informed the shareholders and potential investors of the Company that, based on the preliminary assessment of the unaudited consolidated management accounts of the Group for the year ended 31 December 2014 and the information currently available, the Group is expected to record a net loss for the year ended 31 December 2014 as compared with a profit for the corresponding period in 2013. Such estimated loss can be attributed to the decrease in fair value of the investment properties and the write-down of completed properties held for sale and properties under development as a result of the negative impact of the downturn of the property market in Lvshunkou District, Dalian, the People's Republic of China, in particular, the decrease in selling prices of properties in such district, on the sales of properties of the Group.