KuangChi Science Limited provided earnings guidance for the nine months ended December 31, 2014. For the year, the company expects that the loss of the Group is expected to increase substantially as compared with that for the year ended 31 March 2014. The expected loss in the Group's results for the 9 months period ended 31 December 2014 was mainly attributable to i).

the further impairment loss in respect of goodwill arising from acquisition of the paper business in previous year for approximately HKD 35 million; ii). the recognition of research and development expenses of approximately HKD 55 million incurred pursuant to the Outsourcing Technology Development Agreement entered by the Company on 22 August 2014; iii). the share-based payment expenses of approximately HKD 18 million recognised in relation to the share options granted by the Company on 26 August 2014; and iv).

the financial advisory expenses of approximately HKD 29 million recognised in relation to the acquisition made by the Group during the period.