The board of directors of Sincere Watch (Hong Kong) Limited announced to the shareholders of the company and potential investors that based on the preliminary review of the unaudited management accounts of the Group for the six months ended September 30, 2012, the revenue and the net profit of the company and its subsidiaries for the six months ended September 30, 2012 are expected to decrease as compared to the corresponding period in 2011, mainly attributable to the slowdown in the luxury retail market for fine watches during the review period.