Based on the information currently available, the board of directors of Zhi Cheng Holdings Limited to inform the shareholders and potential investors that the Group is expected to record a substantial loss for the year ended March 31, 2012. The Board considers that the loss is principally attributable to the substantial impairment loss in respect of intangible assets related to the master services agreement and the licensing agreement. Nevertheless, the Board is of the view that such losses will not have any material adverse impact on the business operation of the Group and the financial position of the Group remains sound.