LT Commercial Real Estate Limited announced that as disclosed in the company's interim and final results announcements dated July 22, 2013 and March 20, 2014, the group recorded losses for six months ended June 30, 2013 and the year ended December 31, 2013 of approximately HKD 2.4 million and HKD 21.0 million respectively. Certain factors causing such losses continued to exist in the six months ended June 30, 2014. Based on the preliminary assessment by the management of the group on the unaudited consolidated management accounts of the group for the six months ended June 30, 2014, the group expects to record a significant increase in net loss for the six months ended June 30, 2014 as compared to that of six months ended June 30, 2013 and an increase by approximately 170% as compared to the year ended December 31, 2013.

The loss for the six months ended June 30, 2014 is mainly attributable to: as disclosed in the 2013 annual report of the company, an interest-bearing revolving loan to a former fellow subsidiary of HKD 900,000,000 had been fully repaid to the company on January 30, 2013 and October 4, 2013. Accordingly, no interest income relating to the loan has been recognized by the group for the six months ended June 30, 2014 as compared to the corresponding period of 2013; and as disclosed in the 2013 annual report of the company and the company's announcements dated January 22, 2014, April 15, 2014 and June 23, 2014, the group has been actively pursuing opportunities in the property development and investment business including the acquisition of two pieces of land for the development of the Tangshan Tiexie Lerthai Project and the proposed acquisition of a property in the United States of America during the first half of 2014. As a result of the expansion in business activities, the group incurred higher administration expenses during the six months ended June 30, 2014, including increase in rental and staff expenses, to support the group's operations in Hong Kong, the People's Republic of China and United States of America.