Based on a preliminary review by the board of directors of the United Gene High-Tech Group Limited of the unaudited consolidated management accounts of the Group, the Board announced to the shareholders of the company and potential investors that the Group is expected to record a significant and substantial loss for the year ended June 30, 2012 as compared to the profit of approximately HKD 5.606 million recorded for the year ended June 30, 2011. Based on the relevant information currently available to the company, the Board considers that such loss was mainly attributable to: a significant reduction in turnover; significant impairment loss on the intangible asset in the segment 'Distribution of gene testing services'; a significant impairment loss on an intangible asset and a full goodwill impairment in the segment 'Distribution of bio-industrial products'; and increasing operating expenses for the start-up of the health care management services centre in the segment 'Provision of health care management services'.