The board of directors of Shengli Oil & Gas Pipe Holdings Limited informed the shareholders of the company and potential investors that based on the preliminary assessment of the group's unaudited management accounts for the year ended 31 December 2014 and the information currently available to the Board, it is expected that there would be a significant deterioration in the operating results of the group and is expected to record a comprehensive loss in the range of approximately RMB 180 million to RMB 250 million for the year ended 31 December 2014 as compared to a comprehensive income of approximately RMB 11.69 million for the year ended 31 December 2013.