The board of directors of Talent Property Group Limited informed shareholders of the company and potential investors that, based on a preliminary review of the unaudited management accounts of the group for the five months ended May 31, 2014 and other information currently available to the management of the group, it is expected to record a significant increase of loss and total comprehensive loss for the six months ended June 30, 2014 as compared with that of the six months ended June 30, 2013. Such increase is expected to be primarily attributable to absence of a one-off gain on disposal of subsidiaries as recorded in the preceding period; significant reduction of gain from discontinued operations in the current period as compared to that of the preceding period; potential provision for impairment loss against the properties under development of the group in view of the sluggish residential property market brought by various austerity measures in the PRC; compensation primarily arising from the delayed resettlement of the original occupiers of Linhe Cun Rebuilding project; and exchange loss arising from the translation of Hong Kong dollar denominated convertible notes to Renminbi, the presentation currency of the company.