The board of directors of China Zhongsheng Resources Holdings Limited informed the shareholders and potential investors of the company that, based on the unaudited management accounts of the Group for the eleven months' period ended 30 November 2014 and the management's assessment, it is anticipated that the Group will record a loss for the year ending 31 December 2014 as compared with a profit for the year ended 31 December 2013, mainly due to the non-occurrence of the one-off gain on bargain purchase (negative goodwill) of approximately RMB 60.3 million arising from the acquisition of 95% of the equity interests of Linyi Luxing Titanium Co. Ltd. which has been completed in the first quarter of 2013; and the decrease in the average selling prices of iron concentrates and titanium concentrates during the period from January to November 2014 which resulted in the decrease in revenue.