The board of directors of Phoenix Healthcare Group Co. Ltd. informed the shareholders of the Company and potential investors that based on the information currently available to the Company and the preliminary assessment by the Company's management with reference to the unaudited management accounts of the Group for the five months ended May 31, 2014, the Group is expected to record a significant increase in consolidated net profit attributable to the Shareholders of the Company for the six months ending June 30, 2014 as compared with the consolidated net profit attributable to the Shareholders of the Company of approximately RMB 50.4 million for the six months ended June 30, 2013. The Board considers that the expected improvement in the overall results of the Group for the six months ending June 30, 2014 as compared with the corresponding period in 2013 was mainly attributable to the following reasons: There was a significant decrease in finance costs arising from borrowings and finance leases over the five months ended May 31, 2014 as compared to the six months ended June 30, 2013; and as a result of the continuous business growth of the Group's in-network hospitals and clinics as well as the Group's further consolidation of the procurement needs of such hospitals and clinics, there was a significant improvement in profitability of general hospital services segment and supply chain business segment over the five months ended May 31, 2014 as compared to the five months ended May 31, 2013.