China ITS (Holdings) Co., Ltd. announced earnings guidance for the year ended December 31, 2014. For the year, the company announced that based on the preliminary assessment of the group's operation performance, the group is expected to record a net loss as compared to the net profit recorded for the year ended December 31, 2013. The company considers that such decline in the group's results was mainly attributable to the overall industry slowdown in the urban traffic sector and the potential one-off write down expenses with the associated intangible assets and goodwill; the decline in gross margin in the expressway sector due to particular projects executed in 2014; and the potential expenses which may be incurred as a result of the termination notification dated December 31, 2014 served by the China Expressway Intelligent Transportation Technology Group Ltd. to Beijing Global Holdings Limited as disclosed in the announcement of the company dated December 31, 2014.