Active Group Holdings Limited provided earnings guidance for the year ended December 31, 2014. The company expects to record a loss for the year ended December 31, 2014, as opposed to the year ended December 31, 2013, for which a profit of approximately RMB 72.0 million was recorded. Based on the information currently available to the Board, the expected loss is mainly attributable to the decrease in revenue as a result of worsening market condition, continued sluggish retail environment and rapid growth of online shopping; the decrease in gross profit margin of the Group as a result of the increasing labour and raw materials cost, and the Group's inability to pass the increase in production costs to its customers fully; the increase in administrative and other expenses including fair value recognition for the share based payment granted during the year; and the increase in interest expenses on financing as a result of the issue of debentures for supporting the Group's business expansion and development.