The board of directors of Huayu Expressway Group Limited informed the shareholders of the company and potential investors that the group may incur a very significant loss for the year ended 31 December 2011 as compared to the loss of approximately HKD 11.6 million for the year ended 31 December 2010. Such decrease was mainly attributable to the impairment loss on the intangible assets under the service concession arrangement of the company.