The board of directors of Shanghai Qingpu fire-fighting equipment Co. Ltd. announced to the shareholders of the company and potential investors that, based on the preliminary review of the unaudited consolidated accounts of the Group for the year ended 31 December 2015, the annual results of the Group for the year ended 31 December 2015 are expected to record a loss attributable to the owners of the Group as compared with the profit for the corresponding period in 2014. Such loss was mainly attributable to: (i) fine tuning in some production procedures and change of a fuel used due to the tighten up of environmental protection policies in Shanghai leading to the increase in cost of production; (ii) a decrease in the revenue because some customers stop ordering or ordering less and decrease in trading business due to the weak economic environment in China; (iii) a decrease in gross profit in certain types of products because of price competition.