The board of directors of Winox Holdings Limited informed to the shareholders of the company and potential investors that, based on the preliminary review on the unaudited consolidated management accounts of the group for the ten months ended October 31, 2013 and the information currently available to the Board, the group is expected to record a significant decrease in profit for the year ending December 31, 2013 as compared with that reported for the corresponding year ended December 31, 2012. Such decrease in profit was attributable to the decrease in sales as a result of the slow down of market demand for premium watches and other premium products; the escalated staff and labour cost; the cost of additional resources for the development of mobile phone cases and parts product segment; and the appreciation of Renminbi.