The board of directors of the Company the shareholders of the company and potential investors that the Group is preparing its financial results for the year ended June 30, 2014. Based on the information currently available, the net loss of the group for the year ended June 30, 2014 is expected to significantly increase as compared to the net loss of the Group for the corresponding year ended June 30. 2013.

The expected significantly increase in net loss of the Group was mainly due to the Group (i) incurred the fair value loss in issuance of the unlisted warrants by the Group during the year ended 30 June 2014 and recorded lower gross profit contribution from licensing of newly released films due to the increase in advertising expenses and production costs, while higher gross profit was recorded for the same period last year from licensing of more non-newly released films and television series which had been fully amortized in the previous years, notwithstanding the Group also (iii) recorded the gains arising from the disposal and changes in the fair value of the investment securities and (iv) recorded the gains from the disposal of the entire issued capital in Universe Property Investment Limited and Joy Talent Investment Limited as announced on December 10, 2013.