The board of directors of China Uptown Group Company Limited announced that based on its preliminary review of the unaudited consolidated management accounts of the group for the six months ended June 30, 2012, it is expected that the group would record a loss as compared to a profit for the corresponding period in 2011. The expected loss of the group was mainly attributable to the loss on change in fair value of the convertible bonds of the group and the equity-settled share-based payment expense for the share options granted by the group during the period.