The board of directors of HongKong Chinese Ltd. informed the shareholders of the company and potential investors that the board estimates that the group is likely to record a loss for the fifteen months ended March 31, 2013 as compared to a profit recorded for the twelve months ended December 31, 2011 based on information currently available to the company. However, during the current reporting period, neither the Group nor its associates had any fair value gain arisen from completion of their property projects, and less profit was recognized from the sale of properties and higher finance costs were incurred by the associates.