The board of directors of China Energy Development Holdings Limited informed the shareholders of the Company and potential investors that the Company and its subsidiaries is expected to record a significant increase in loss for the six months period ended 30 June 2015 by approximately HKD 20 million, as compared to the corresponding period last year. The increased loss of the Group is mainly due to the net effect resulted from (a) an impairment loss of intangible assets of the Group's oil and natural gas project in North Kashi Block, Tarim Basin, PRC in the amount of approximately HKD 130 million; and (b) a gain in the amount of approximately HKD 90 million resulted from the cancellation of shortfall bonds in accordance with the terms of the Totalbuild Transaction.