361 Degrees International Limited announced that the performance of the Group for the year ended 31 December 2013 have demonstrated a significant downturn compared to 2012, thus the Group's net profit for the year ended 31 December 2013 is expected to be significantly lower than that of the previous year. The change in net operating results of the Group was mainly due to the following reasons: (i) a significant decrease in 2013's orders; (ii) an increase in the effective tax rate due to the expiration of all tax concessions previously enjoyed by the Group; and (iii) a substantial increase in impairment loss during the second half of 2013 as there is a clear slow-down in the settlement of accounts receivable for the period.