The board of directors of China Green Holdings Ltd. announced that the company based on the unaudited financial information currently available to management, it is anticipated that the group will record a loss attributable to owners of the company for the six months ended October 31, 2013 as compared with the profit attributable to owners of the company for the corresponding period in 2012. The anticipated loss is mainly attributable to the increase in revenue from the group's branded beverage products segment partly offset by an increase in raw materials costs and labour costs, resulting in a lower increase of operational profit from the Group's branded beverage products segment. The increase in amortisation of prepaid rentals and corresponding expenditures of the Baicheng Base in Jinlin Province which comprises 200,000 mu of farmland for the six months ended 31 October 2013 compared to 50,000 mu of farmland for the corresponding period in 2012.

The increase in finance expenses due to the fact that the company's convertible bond was in default since April 12, 2013 attracting default interest payment.