Pan Asia Environmental Protection Group Limited provided earnings guidance for the year ended December 31, 2013. After a preliminary review of the consolidated management accounts of the Group, the board of directors of the company announced that the Group might still record a consolidated net loss for the financial year ended December 31, 2013. However, the profit and loss condition of the Group has improved as compared to the audited consolidated net loss for the corresponding period for the financial year ended December 31, 2012 and is expected to continue to improve.

The Board considers that the consolidated net loss for the financial year ended December 31, 2013 was mainly due to the reason that the revenue generated from the new wood wool cement board business was still relatively low when compared to the expenses incurred for developing the business during the year as the business was still at its infant stage.