The Board of directors of Sustainable Forest Holdings Limited announced that, based on a preliminary assessment by the company's management according to the group's latest unaudited consolidated management accounts and the information currently available to the company, the annual results of the Group for the financial year ended March 31, 2014 is expected to record a loss, which would be mainly attributable to the possible impairment loss on revaluation of the Group's biological assets in Brazil arising from the decrease in timber prices; and the possible provision for impairment on the Group's biological assets in Brazil for the financial year ended March 31, 2014 as a result of the change in operation model.