The board of directors of Shun Cheong Holdings Ltd. is to inform shareholders of the company and potential investors that the Group is expected to record a loss for the year ended March 31, 2012 as compared to the profitable results for the year ended March 31, 2011. Such expected loss was mainly attributable to, among other things, the increase in material costs, staff costs and finance costs and the additional expenditure in the maintenance of the Group's hotel operations during the year ended March 31, 2012.