Gemini Investments (Holdings) Limited provided consolidated earnings guidance for the year ended December 31, 2014. For the period, the group is expected to record a significant loss as compared to the audited net profit attributable to the owners of the company of approximately HKD 39.2 million for the year ended December 31, 2013. Such deterioration in profitability for the year ended December 31, 2014 was mainly attributable to the following factors: finance costs of approximately HKD 37.9 million, including the non-cash interest expenses of approximately HKD 22.3 million relating to the loan in the principal amount of HKD 1,000,000,000 granted to the company by its controlling shareholder, Grand Beauty Management Limited, which are required to be recognized in the consolidated income statement of the Group under applicable accounting standards despite that such interest was waived by Grand Beauty Management Limited as previously disclosed in the announcement of the company dated 24 May 2014; non-recurring fees and expenses of approximately HKD 28 million arising out of the acquisitions explored and/or implemented by the Group in 2014 (including the various acquisitions mentioned in this announcement below); non-cash share of losses in a joint venture of the Company.

After acquiring a number of property projects in the People's Republic of China as mentioned in the announcement of the company dated 17 November 2014, the joint venture (being Sino Prosperity Holdings Two Limited in which the Group has an attributable 50% equity interest), pursuant to stringent asset management policy, applies a conservative assessment on the value of the acquired property companies and decided to record a loss of not more than HKD 1 billion comprising: a loss of not more than HKD 0.55 billion from revaluation of property interests, representing approximately 1.9% of the property interests' value of approximately HKD 28.0 billion as at 30 September 2014; and an impairment loss of trade and other receivables of not more than HKD 0.45 billion, representing approximately 8.7% of the trade and other receivables' carrying value of approximately HKD 5.2 billion as at 30 September 2014. The absence of an one-off gain of approximately HKD 45.7 million from the disposal of a subsidiary recorded for the financial year of 2013.