The board of directors of China Water Property Group Limited informed the shareholders and potential investors of the company that the Group expects to record a significant loss in the financial results for the six months ended 30 June 2013. Although the Group expects to record a significant increase in revenue for the six months ended 30 June 2013 as compared to the same for the corresponding period for the six months ended 30 June 2012 with achieving strong sales for the residential properties developed by the Group in the People's Republic of China, a significant loss is expected to be recorded for the period. The loss is primarily driven by (1) decrease in fair value gain on revaluation of investment properties of the Group in the PRC, (2) one-off share option expenses in relation to the share options granted and (3) the increase in finance cost due to the increase in general borrowings by the Group during the six months ended 30 June 2013.