Based on the information currently available, the Board of New Smart Energy Group Limited informed the shareholders of the company and potential investors that further to those set out in interim report of the company relating to the group's interim results, the annual results of the group for the year ended December 31, 2011 will be further deteriorated from the interim results as the group will further recognize an impairment loss on production sharing contract for the year ended December 31, 2011. The group is therefore expected to record a significant loss for the year ended December 31, 2011 as compared to the audited annual results for the corresponding period in 2010.