The Board of Dynasty Fine Wines Group Ltd. informed the shareholders of the company and potential investors that the Group is expected to record a greater unaudited consolidated loss for the six months ended 30 June 2013 as compared to the loss for the same period last year. The increased loss estimate is mainly attributable to: a decrease in sales volume compared to same period last year as a result of weaker demand of domestic wine products amid the slower economic growth in the People's Republic of China and impact of imported wines; government policy of restrictions on entertainment and hospitality; and the impact of reform on the Group's sales and distribution model as disclosed in the Company's 2012 interim report. Such reform continues to progress on track but the pace of reform was slower than expected, especially in Jiangsu and Zhejiang provinces and Shanghai city, and will take time to implement; a decrease in gross profit margin compared to same period last year because of a significant decrease in the sales of high-end products such as a cask collection of premium wines; an increase in distribution costs as a percentage of revenue compared to the previous period's due to continuous increase in investment in brand building, sales and marketing in response to the market change, reform on its sales and distribution model and sustainable development of the Company; and an increase in administrative expenses in respect of legal and accounting professional services.