The board of directors of Chanco International Group Ltd. announced that the loss of the group for the six months ending 30 September 2013 is expected to have a significant increase as compared to the corresponding period in 2012. Based on the latest information available, 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 the continuing slowdown in the retail market in the first half of financial year 2013/14. The board announced that the financial position of the group remains sound and healthy.