CHINA NUCLEAR ENERGY TECHNOLOGY CORPORATION LIMITED China Nuclear Industry 23 International Corporation Limited announced that after a preliminary review on the unaudited consolidated management accounts of the Group for the year ended December 31, 2014, the Board expected to record a significant increase of net loss for the year ended December 31, 2014 as compared to the net loss for the year ended December 31, 2013, among other things, the expected loss is mainly due to the decrease in profit of the new energy business of the Group was leading by severe competition that number of projects decreased substantially. Besides, the increase in operating costs and the extension of projects period also affected the second half year progress of the business development. Therefore, the relevant business of the Group is expected to record a significant net loss for the year ended 31 December 2014; the catering business is expected to record a net loss for the year ended 31 December 2014, primarily due to the effect from the macroeconomic environment and increase in operating costs which had negative impact on the results for the year ended 31 December 2014; and in compliance with the existing applicable accounting standards adopted by the Group, the Acquisition Convertible Bonds are required to recognise as derivative financial assets/liabilities in the consolidated financial statements of the Group, while gains or losses relating to the net changes in fair value are also necessary to be reflected in the consolidated statement of profit or loss.
The Company made early redemptions of the Acquisition Convertible Bonds on 20 February 2014 and 26 May 2014, respectively, and the closing prices of the Shares on those dates of such redemptions were lower than that as at the end of the previous financial year. Therefore, in accordance with the existing applicable accounting standards, the Group is expected to record the impact of gains from net changes in fair value of the above derivative financial liabilities, and it is expected that such gains will decrease significantly as compared to the gains for the year ended 31 December 2013.
