The board of directors of Shunfeng International Clean Energy Limited informed the shareholders of the company and potential investors that, based on preliminary review of the unaudited consolidated management accounts of the group for the six months ended 30 June 2015 currently available, the group is expected to record a significant decline in net profit by over 50% for the six months ended 30 June 2015 as compared to the unaudited net profit of approximately RMB 503.9 million for the six months ended 30 June 2014. Such significant decline was primarily attributable to: the intensive competition in the solar market resulting in a decline in average selling prices of the Group's solar products by approximately 20% as compared to the same period in the previous year, despite the sales volume of the Group's solar products and electricity generated were increased by approximately 20% and 200% respectively; a significant increase in sale and administrative expenses; an increase in financial costs incurred in connection with convertible bonds issued by the Group in December 2014 and January 2015 in support of the business expansion of the Group; and inability to capitalise certain interest expenses relating to the development of the solar plants of the Group as most of the solar plants have been in normal operation.