The board of directors of Shanghai Zendai Property Ltd. announced that the group is expected to record a significant increase in loss for the year ended December 31, 2015 as compared to the loss recorded for the year ended December 31, 2014. Based on the preliminary review of the information currently available, such increase in loss was mainly attributable to a reversal of land appreciation taxes of HKD 524,977,000 recorded in the year ended December 31, 2014, while no such reversal was recorded in the year ended December 31, 2015; an increase in financial cost due to increased borrowing; and due to the pre-sale of projects in 2015 of the Group are not yet delivered and cannot be recognized as turnover, the turnover and the gross profit for the year ended December 31, 2015 were insufficient to cover the charges and expenses.