the Group is expected to report a substantial increase in consolidated net profit, compared to the corresponding period from 1 January 2014 to 31 March 2014.
The expected profit growth is mainly due to the increase in gross profits as sales volume of the Group’s products increased, while the cost of raw materials decreased. The expected profit growth is consistent with the trend of decreased cost of raw materials as seen in the previous quarter.
R&D expenses in 1Q shot up to 10m rmb, from 0.5 m rmb. I don't like this.
(quote company: "The increase in R&D expense was due to R&D activities undertaken by the Group to enhance our product quality and also to develop other potential products in order to enrich our product line.") I find this not sufficiently clear .