The board of directors of China Fortune Holdings Limited expected that the unaudited interim results of the company and its subsidiaries for the six months ended June 30, 2012 will record a greater loss than that of the six months ended 30 June 2011, as a result of a drop in revenue of the Group's mobile phone fulfillment distribution business and a write-down of inventories made in the said business rendering a fall in the overall gross profit level in such period.