China NT Pharma Group Company Limited board of directors announced that based on a review of the Group's unaudited management accounts for the year ended December 31, 2012 and the information currently available to the Board, it is of the view that the Group will record a substantial loss for the year ended December 31, 2012. The expected loss is principally attributable to the Company's business restructuring measures introduced during the year ended December 31, 2012 in order to enhance its competitiveness and to improve cash flow, which involved a gradual exit from its vaccine and pharmaceutical supply chain business and downsizing of its vaccine sales and promotion team. Furthermore, after conducting a thorough review of its business units and product portfolio, the Group made the decision to terminate its over-the-counter promotion business as well as its dermatological products around the end of 2012 in order to focus on its pharmaceutical promotion business in the key therapeutic areas of oncology, anti-infectives and central nervous systems. As a result of these business restructuring measures, the Group will report substantially decreased sales revenue and significant impairment of accounts receivable, write-down of inventories, impairment of distribution rights, prepayments and deposits as well as staff retrenchment, leading to a substantial loss for the whole year.