The board of directors of Guangzhou R&F Properties Co., Ltd. informed the shareholders of the company and potential investors that, based on the information currently available to the Board, the unaudited consolidated net profit of the group for the six months ended 30 June 2012 is expected to show a significant decrease as compared with the same period in 2011. This decrease is primarily attributable to the reduction in the Group's total gross floor area delivered to buyers and a decrease in the gross profit of properties delivered during the period as compared to the corresponding period in 2011. It should be noted that the consolidated net profit of the six months ended 30 June 2011 for comparison in turn recorded a 186% increase from the six months ended 30 June 2010 due to an increase in gross floor area delivered and the delivery of a higher proportion of properties having above-average gross profit.