China Green (Holdings) Limited provided earnings guidance for the year ended April 30, 2014. The company anticipates that the Group will record a loss attributable to owners of the company as compared with the profit attributable to owners of the Company for the corresponding year in 2013. 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 decrease in revenue and expected loss from the Group's fresh produce and processed products for the year ended 30 April 2014 compared with the profit for the corresponding year in 2013.

Such decline in operational performance of the Group's fresh produce and processed products is mainly due to weakened demand from Japan, one of key markets for the Group's fresh produce and processed products, as a result of the continuous diplomatic tension between China and Japan as well as the overall appreciation of Renminbi against Japanese Yen in the past few years making exports to Japan comparatively more expensive; provision for impairment loss of assets related to the Group's fresh produce and processed products as a result of the deterioration of profitability of this segment; the increase in amortisation of prepaid rentals and corresponding expenditures of the Baicheng base in Jilin province due to the increase in the average area of the Baicheng base under lease and cultivation during the year ended 30 April 2014 compared with that in the corresponding year in 2013; the increase in finance expenses due to the fact that the RMB 1,350,000,000 US Dollar settled 3.00%. convertible bonds due 2013 of the Company were in default since 12 April 2013 attracting default interest payment and additional professional fees and expenses. The convertible bonds were subsequently restructured on 13 November 2013; and the accounting provision for impairment loss of approximately RMB 46 million due to the disposal of a subsidiary as stated in the Company's announcements dated 20 October 2013 and 23 October 2013.