Shirble Department Store Holdings (China) Limited board announced that the Group would continue to incur net loss for the year ended December 31, 2013 due to the following reasons: the impairment loss and related expenses arising mainly from the closure/under-performance of certain department stores in Dongguan, Guangdong Province, which incurred operating losses but contributed insignificant % of the sales revenue of the Group; and the operating losses incurred by five department stores of the Group which were opened in the fourth quarter of 2012 and the first quarter of 2013. The sales revenue generated by these department stores is still not sufficient to cover the operating expenses, including start-up expenses, depreciation, and the rental expenses of the store premises.