The board of directors of Shanghai Zendai Property Ltd. announced that despite the fact that there was an increase in the group's turnover for the six months ended 30 June 2015, the group is expected to record an increase in loss attributable to owners of the company for the six months ended 30 June 2015, as compared to the loss attributable to owners of the company for the six months ended 30 June 2014. Based on the preliminary review of the information currently available, such loss was mainly attributable to the following reasons: a decrease in gross profit due to the gross profit margin of recognized items in the current period being lower than the corresponding period in the previous year; a specific provision for diminution in value of properties under development in Haimen of approximately HKD 66 million; and an increase in interest expense due to increased borrowing amount.