The board of directors of Chinese Estates Holdings Ltd. informed the shareholders of the company and potential investors that it is expected that the net profit of the group for the year ended December 31, 2012 may increase significantly as compared to the net profit for the year ended December 31, 2011. The Board attributes the increase in net profit mainly to unrealized valuation gains on certain investment properties of the group in Hong Kong, Mainland China and overseas; and the realized and unrealized gains on listed securities investments as announced by the company on January 2, 2013 and January 15, 2013 respectively.