Pan Asia Environmental Protection Group Limited provided consolidated earnings guidance for the six months ended June 30, 2013. For the six months, the company reported higher unaudited consolidated net loss as compared to the unaudited consolidated net loss for the corresponding period for the six months ended 30 June 2012. The consolidated net loss for the six months ended 30 June 2013 was mainly due to the reasons as follows: there was a decrease in the gross profit margin of the Group for the six months ended 30 June 2013 due to keen competition in the industry and increase in cost; and although the new wood wool cement board business continues to generate revenue for the Group for the six months ended 30 June 2013, the amount of such revenue was still small as compared to the increasing expenses incurred on development of such business for such period; however, the Board believes that continuing development of such new business would eventually be rewarding and beneficial to the Group as the revenue is expected to be growing in future.