China Seven Star Holdings Limited expects that a loss will be recorded in the final results for the year ended 31 December 2013 against a profit recorded for the financial year ended 31 December 2012. The Board considers that the anticipated loss of the Group for the year ended 31 December 2013 is mainly attributable to an increase in the allowance and written off for inventories and in the allowance for trade and other receivables in the PRC retail and distribution and television advertising business of the Group.