The board of directors of Kasen International Holdings Ltd. announced that, based on the information currently available to the Board and the preliminary review of the unaudited management accounts of the group for the year ended December 31, 2014, it is expected that the group will experience a substantial decline of approximately 70% or more in its consolidated net profit attributable to owners of the company for the year ended December 31, 2014 as compared with the corresponding period for the year ended December 31, 2013. Based on information currently available to the company, the Board considers that such decline is primarily attributable to the substantial decrease in the delivery of properties during the year ended December 31, 2014 as compared with the corresponding period in 2013, which in turn translates into a substantial decline in the group's revenue generated from the property development segment; the sharp increase of raw material prices for the group's manufacturing segment; and the increase of loss suffered by a subsidiary of the group due to increase in operational expenses during the year ended December 31, 2014.