Based on information currently available, the board of directors of New Smart Energy Group Limited informed to the shareholders of the company and potential investors that the group is expected to continue to record a loss for the six months ended June 30, 2013. Such loss was mainly attributable to a decline in the overall gross profit margin of the Group; an amortisation of production sharing contract; a loss on restructuring of convertible notes of the company and the imputed interest incurred on the convertible notes of the company though there is a fair value gain of the embedded derivative portion of the convertible notes of the company.