APAC Resources Limited announced that it has completed the review of the carrying value of the Group's interests in associates as at June 30, 2013 and has determined the basis for the determination of the impairment provision. Based on this review, for the year 2013 an impairment provision of approximately HKD 2,111 million is expected to be made against the carrying value of the Group's interests in associates as at June 30, 2013. Such impairment provision is expected to turn the profit before impairment provision into a substantial loss for the year 2013 as compared with the loss recorded for the year ended June 30, 2012 both before and after taking into account the impairment provision for that year.

The recorded loss for the year 2012 for comparison purposes has been based on the results as restated due to the early adoption of the new accounting standard on the treatment of mine waste stripping costs. The improvement in profitability before impairment provision is mainly attributable to (i) the expected increase in the Group's share of profits (net of losses) of associates which reflects the turnaround performance of one of the two major listed associates of the Group, which turned a reported loss for the year 2012 into a reported profit for the year 2013, benefited from higher throughput, higher grade ore mined, higher average realised tin prices and improved production efficiency while the contribution from the other major listed associate remained at similar level as the year 2012; and (ii) an expected improved performance in the resource investment business resulting in a smaller reported loss, due to an increased weighting in cash and producing resources companies which are less volatile.