The board of directors of China Oil Gangran Energy Group Holdings Limited informed the shareholders of the company and potential investors of the company that, based on the information currently available, the group is expected to record an increase in the unaudited consolidated net loss for the six months ended 30 September 2014 as compared with the corresponding period in 2013. The Board believes that the increase in the unaudited consolidated net loss was due to the development of the business of the group. The increase in loss was mainly attributable to the increase in operating costs, being mainly legal and professional fee and consultation expenses; the increase in finance costs, being the issuance of promissory notes and convertible bonds; and the share-based payments incurred due to the grant of share options to the management and consultants of the group during the six months ended 30 September 2014.