The board of directors of Chaowei Power Holdings Limited informed the shareholders of the company and potential investors that, based on the information currently available and the preliminary review of the consolidated management accounts of the Group for the five months ended 31 May 2013, the company expects to record a significant decrease in the profit of the Group for the six months ended 30 June 2013, as compared to that for the corresponding period of the previous year. The Board considers that the expected significant decrease in profit was mainly attributable to the intense competition in the lead-acid motive battery market in the PRC since the fourth quarter in 2012, which has kept the selling prices of products under pressure. Nevertheless, in view of: the overall sustained growth of the electric bike market in the PRC; the continuous consolidation of the lead-acid battery industry; and the forthcoming implementation of the Industry Entry Requirement of the Lead-acid Battery Industry at the end of 2013 and that more than 85% of the Group's production capacity is already using the Enclosed Battery Formation Process which is in compliance with the Entry Requirement, the Board remains confident about the Group's long term prospects.