Dynasty Fine Wines Group Ltd. provided earnings guidance for the year ended December 31, 2014. The Board informs the shareholders of the Company and potential investors that it is anticipated the Group would continue to record an unaudited consolidated loss for the year ended 31 December 2014 as compared to the unaudited consolidated loss for the last year. Based on the review of the preliminary estimate and assessment made with reference to the draft unaudited consolidated management accounts of the Group for the year ended 31 December 2014 currently available to the Board, such loss estimate is mainly attributable to: decrease in gross profit and its margin as a result of: a decrease in sales volume compared to last year as a result of (1) government policy of restrictions on entertainment and hospitality; and (2) weaker demand of domestic wine products amid the slower economic growth in the People's Republic of China and impact of imported wines; a decrease in average selling price compared to last year because of shift of product mix to more medium to low-end products in response to the market demand; and an increase in provision for impairment of certain aged trade receivables of approximately HKD 30 million.

The Board expects that the amount of the unaudited consolidated loss for the year ended 31 December 2014 would be less than that of the unaudited consolidated loss for the last year by ranging from 20%­30%, subject to potential adjustments and finalisation that might be incurred during the audit. The decrease in the amount of the loss was primarily due to the distribution cost saving following the effective implementation of cost control policy.