The Board of Directors of Hu An Cable Holdings Ltd. provided preliminary unaudited earnings guidance for the year ended 31 December 2014. For the period, the Group expects to report a loss for the financial year ended 31 December 2014 as compared to a profit for the financial year ended 31 December 2013. The loss was mainly attributed to: a decrease in gross profit as a result of lower sales volume of all products, including cable and wire products, copper rods, aluminum rods and plastic materials, and lower selling prices corresponding to the fall in copper prices; impairment loss on doubtful trade receivables due to slow debt collection; impairment loss on machinery and equipment due to suspension of the production lines for copper rods and aluminum rods as a result of unviable low margins and intense market competition; and impairment of inventories due to the decrease in the prices of copper and aluminum (which are the main constituent raw material).