Juda International Holdings Limited board of directors expected that the financial results of the Group for the twelve months ended 31 March 2014 may experience a substantial decrease in net profit as compared to that of the corresponding year ended 31 March 2013. Such estimated decrease was primarily attributable to a decline in gross profit margin for the twelve months ended 31 March 2014 as a result of the increase in the average purchase cost of the major raw materials purchased and decrease in average selling price of products sold by the company.