The board of directors of Simsen International Corporation Limited inform the shareholders of the company and potential investors that, based on the information currently available to the Board, it is expected that the company and its subsidiaries may record a larger loss for the six months ended 31 October 2012 as compared to the loss for the corresponding period ended 31 October 2011. The expected increase in loss is principally attributable to fair value loss on the convertible notes designated as at fair value through profit or loss as well as worsening operating results for the six months ended 31 October 2012.