China Qinfa Group Limited board of directors announced that after a preliminary review on the Group's unaudited consolidated management accounts for the six months ended June 30, 2014, the Group expects that the unaudited loss attributable to equity holders of the company for the six months ended June 30, 2014 may be significantly higher than that for the six months ended June 30, 2013. Based on the relevant information currently available to the company, the Board considers that such unaudited loss is primarily attributable to: the continuing downturn of coal market, substantial decline in the price of coal and the decrease in the average selling price of coal of the Group caused by various factors such as slowdown in the macroeconomic growth and sluggish demand growth from downstream industries; the increase in net finance cost; and the impairment in the deferred tax assets arising from tax loss carried forward.