Chanco International Group Limited announced that the loss of the group for the year ended 31 March 2014 is expected to have a significant increase as compared to the year ended 31 March 2013. The expected increase in loss was mainly due to the reduction of orders from overseas customers and rising production costs in the PRC. Apart from the manufacturing business, the increase in loss was also due to the decrease of retail sales as a result of increasing market competition and continuing slowdown in the retail market.

Other than the above factors, the loss of the group for the year ended 31 March 2014 is expected to increase further as a result of the recognition of impairment loss on the inventories and the property, plant and equipment.