The board of directors of Wanjia Group Holdings Limited announced that based on the preliminary assessment of the latest unaudited financial information, it is expected that the Group would record loss of approximately HKD 685 million to HKD 770 million attributable to Shareholders for the three months ended June 30, 2014 as compared to that a profit attributable to Shareholders for the corresponding period in 2013 of approximately HKD 13.82 million. The loss was mainly attributable to the decrease in revenue generated from the pharmaceutical wholesales business for the reporting period due to the promulgation and implementation of new Good Supply Practice (GSP) in Fujian in April 2014 which imposes stringent regulations on pharmaceutical distributor operation and causes significant decrease in sales to distributor customers.

The loss is attributable also due to impairment of goodwill of approximately HKD 700 million to HKD 780 million for the reporting period. was recognized due to the foreseeable reduction in sales from distributor customers as a results of the promulgation and implementation of the new GSP.