Based on the preliminary assessment on the unaudited consolidated management accounts of Synertone Communication Corporation for the year ended 31 March 2013, the board of directors of the company informed the shareholders of the company and potential investors that the group is expected to record a significant decline in the net profit of the group for the year ended 31 March 2013 as compared with that of the corresponding period in 2012. Based on the information currently available to the company, the Board believes that the expected decline in the net profit of the group is mainly attributable to the decrease in turnover from the group's specialized communication business as compared with that of the corresponding period in 2012 resulting from the economic and political uncertainties surrounding the domestic and foreign territories, the slow global economic recovery and weaker demand of the group's products and systems in the PRC.