The board of directors of Jiangsu Nandasoft Technology Company Limited informed the shareholders of the company and potential investors that, based on the preliminary review of the unaudited consolidated management accounts of the Company and its subsidiaries for the year ended 31 December 2015, the loss of the Group is expected to increase by approximately 100% for the year ended 31 December 2015 as compared to the loss of RMB 78,857,943 for the corresponding period in year 2014. The expected increase in loss is primarily attributable to the Settlement Agreement entered into with China Nuclear Huaxing, pursuant to which the profits decreased by approximately RMB 60,000,000; and for the year ended 31 December 2014, the revaluation income of property investment was approximately RMB 27,000,000 and for the year ended 31 December 2015, the revaluation income of the above property investment was RMB 5,000,000, representing a decrease of approximately RMB 22,000,000 in profits as compared with 2014.