AMCO United Holding Limited provided consolidated earnings guidance for the year ended December 31, 2014. For the period, the company expects to continue to record a loss for the year ended 31 December 2014 but the net loss for the year ended 31 December 2014 may decrease by more than approximately 40% as compared with the net loss for the year ended 31 December 2013. The Board believes that such loss and the expected decrease in the net loss for the year ended 31 December 2014 are primarily attributable to the declines in turnover and gross profit margin of Plastics Moulding Business due to fierce competition in the overall manufacture of plastics molding industry and rise in labor and production overhead cost.

The upfront cost of relocation of production lines incurred of approximately HKD 3.7 million, which will be included in cost of sales and administrative expenses, whereas there was no such cost in the corresponding year of 2013. The absence of a one-off gain on deregistration of certain subsidiaries of approximately HKD 4.4 million as recorded in the corresponding year of 2013. The decrease in administrative expenses primarily due to decrease in staff cost and other general administrative costs, which was partially offset by the increase in termination benefits paid for the termination of employment due to the relocation of production lines in Plastics Molding Business.

The increase in the recognition of loss in fair value upon the conversion of convertible notes through profit or loss of approximately HKD 4 million as compared to the recognition of loss in fair value of outstanding convertible notes of approximately HKD 1.6 million in the corresponding year of 2013. The absence of the impairment loss on property, plant and equipment in Plastics Moulding Business of approximately HKD 5.7 million as recognized in the corresponding year of 2013. The decrease of approximately HKD 30 million in the impairment loss on goodwill in Medical Devises Business as compared to that in the corresponding year of 2013.