The board of China Automation Group Ltd. announced that shareholders and potential investors that based on the preliminary assessment by the board according to information currently available, the group is expected to record, for the year ended December 31, 2015, a loss from continuing operations of the group in the range of approximately RMB 250 million to approximately RMB 400 million; a profit from discontinued operations of the group of approximately RMB 217.3 million, which is mainly attributable to the gain from the disposal of 76.7% equity interest in (transliterated as Beijing Jiaoda Microunion Technology Company Limited) by the group; and taking into account the above, and a consolidated net loss in the range of approximately RMB 32.7 million to approximately RMB 182.7 million as compared to a consolidated net profit of approximately RMB 46.7 million for the year ended December 31, 2014. The abovementioned expected loss from continuing operations of the group is primarily due to: significant increase in the allowance for bad and doubtful debts against those accounts receivables aged over two years, which recoverability is uncertain; significant impairment losses expected to be recorded against the goodwill and intangible assets namely licenses, development expenditures as well as certain non-patented technologies in light of the slowing businesses related mainly to traction system and industrial railway signaling against a backdrop of the overall economic slowdown in China; the loss from the early redemption of the company's guaranteed notes; and the exchange loss arising from the devaluation of Renminbi versus US dollar and other currencies.