China Star Entertainment Ltd. provided earnings guidance for the year ended December 31, 2012. The Board of company announced that the Group will record a profit for the financial year ended December 31, 2012 as compared to a loss for the year ended December 31, 2011. The expected profit is mainly due to the substantial decrease in impairment loss to be recognized in respect of the intangible assets represented the rights in sharing of profit streams from gaming promotion operations at one of the VIP room in a Macau casino.

During the financial year ended December 31, 2012, the market environment is comparatively stable when compared to last year and the impairment loss to be recognized is expected to be substantially decreased.