The board of directors of the China Foods Limited announced that the shareholders of the company and potential investors that, based on a preliminary review of the draft unaudited consolidated management accounts of the Group for the year ended December 31, 2012, it is expected that the Group will record a relatively large decrease in its unaudited consolidated net profit for the year ended December 31, 2012 as compared to the audited consolidated net profit for year ended December 31, 2011. The Board believes that the expected relatively large decrease in unaudited consolidated net profits of the Group is primarily attributable to the results of the Group's kitchen food business, which has recorded a loss in excess of HKD 100 million for the year ended December 31, 2012 and a decrease in the profit of the Group's wine business, even though the Group's beverage business reported a continuous growth in operating result and the Group's confectionery business reported a relatively large reduction in operating loss.