The board of directors of Zheda Lande Scitech Ltd. to informed the shareholders of the company and potential investors that, based on its initial assessment of the unaudited consolidated management accounts of the group, the group is expected to record a loss attributable to owners of the company for the six months ended June 30, 2014 as compared to a profit attributable to the owners of the company of approximately RMB 1,080,000 for the six months ended June 30, 2013. The decline in the results of the group was mainly attributable to a decrease in turnover of the telecommunication value-added services segment of the Group due to intensified market competition.