China Tycoon Beverage Holdings Limited board of directors announced that, based on a preliminary review of the Group's unaudited management accounts for the eleven months ended 30 November 2014 and taking into account, among other things, the securities investments reportable segment results for the year ended 31 December 2014; and the recognition of share-based payment expenses as a result of the grant of share options as announced by the company on 30 December 2014, the Group is expected to record a substantial increase in loss for the year ended 31 December 2014 as compared to the loss for the year ended 31 December 2013. Such expected substantial increase in loss is mainly attributable to: substantial decrease in gross profit margin of the manufacturing and trading of hard and stuffed toys reportable segment for the eleven months ended 30 November 2014 due to intensive market competition and the continuing rise of production costs; the recognition of share-based payment expenses, which is a non-cash expense, of approximately HKD 15.0 million based on a preliminary valuation obtained from an independent professional valuer; and loss on the securities investments reportable segment of approximately HKD 17.3 million for the year ended 31 December 2014. It is expected that the Group's loss for the year ended 31 December 2014 will be increased substantially as compared to the loss for the year ended 31 December 2013 (HKD 46.8 million).