Based on the preliminary review of the management accounts of Century Ginwa Retail Holdings Limited for the six months ended June 30, 2014 and information currently available, the announced that profit for the period and profit attributable to equity shareholders of the company are expected to record decrease by approximately 50% as compared with that for the corresponding period ended June 30, 2013. The Board believes that it is due to a decline in both turnover and gain in the valuation of an investment property and an increase in finance costs and staff costs as compared with the same period last year. The decrease in turnover is estimated to be within 10% as compared to the same period last year and was attributable to the slowdown of the retail market in the PRC.

The gain in the valuation of an investment property is estimated to drop by approximately 15%. The gain is non-cash in nature and will not have material negative impacts on the cash flow and business operation of the Group. Finance costs and staff costs increased by approximately 65% and 15% over the same period last year respectively.