Wuyi International Pharmaceutical Company Ltd. provided consolidated earnings guidance for the six months ended June 30, 2014 and full year of fiscal 2014. The board of directors of the company informed shareholders of the company and potential investors that, based on the information currently available to the group, the group is expected to record a significant decrease in consolidated net profit, or even a loss, for the six-month period ended 30 June 2014 as compared to the consolidated net profit recorded for the six-month period ended 30 June 2013. The board attributes the decrease to the management's estimate of a substantial increase in depreciation expense of the group for the year as a result of the commencement of production of a new factory of the Group in Haixi Commercial Trading Development Zone, Jianyang, Fujian province, China after a New GMP certification was granted at the beginning of the year.

It is expected that the unaudited depreciation expense for the year will exceed approximately RMB 80,000,000 (the audited depreciation expense for the year ended 2013 was approximately RMB 61,000,000). Accordingly, the gross profit and profit of the group for the six-month period ended 30 June 2014 and the year ended 2014 are expected to decrease.