The board of directors of Chanjet Information Technology Company Limited announced the group expects to record a net loss for the year ended 31 December 2015. The profit attributable to the owners of the parent for the year ended 31 December 2015 is expected to decrease by approximately 150% to 190% as compared to the profit attributable to the owners of the parent for the same period of 2014. The profit attributable to the owners of the parent for the year ended 31 December 2014 is RMB 101.64 million as disclosed in the annual results announcement of the Company dated 19 March 2015.

The Board considers that the expected net loss of the Group for the year ended 31 December 2015 and the expected decrease of the profit attributable to the owners of the parent as compared to that for the same period of 2014 are mainly due to: the increase in the operation and R&D input in relation to cloud service business by the Group: the significant increase in the operation input in relation to cloud service business, including labor costs, server depreciation charges, cabinet rental expenses and promotion costs; and the inclusion of the amortized amount and the R&D costs for continuous improvement of R&D capitalization projects after settlement in the consolidated statement of profit or loss; and the inclusion of the cost of employee trust benefit scheme of the Group from 16 June 2015, being the date of completing the initial grant under the employment trust benefit scheme of the Group, to 31 December 2015 in the consolidated statement of profit or loss. Without considering the cost of employee trust benefit scheme, the profit attributable to the owners of the parent for the year ended 31 December 2015 is expected to decrease by approximately 30% to 60% as compared to that for 2014. Despite the expected net loss of the Group for the year ended 31 December 2015 and the expected decrease in profit as compared to that for the same period of 2014.