The board of directors of China HealthCare Holdings Limited announced that based on preliminary review of the unaudited consolidated management accounts of the group, it is expected that the group will record a loss for the six months ended 30 September 2013. For the year ended 31 March 2013, a gain arising from extinguishment of liability component of redeemable convertible cumulative preference shares of approximately HKD 239.6 million was recognized in the income statement. However, it is expected that there will be significant decrease in such gain recognized in the income statement for the Period.