Sincere Watch (Hong Kong) Limited informed the shareholders of the company and potential investors that based on the preliminary review of the unaudited management accounts of the Group for the year ended 31 March 2014, a moderate reduction in the revenue and a material decrease in the net profit of the Group for the year ended 31 March 2014 are expected as compared to those for the financial year ended 31 March 2013, mainly attributable to the slowdown in the luxury retail markets for fine watches, the increase in the realised exchange loss by approximately 175% and the incurrence of the unrealised exchange loss of approximately HKD 2.5 million during the review year.