The board of directors of HKC (Holdings) Limited announced shareholders of the company and potential investors that based on the unaudited consolidated accounts of the Group for the six months ended June 30, 2014, the Group is expected to record a larger loss for the six months ended June 30, 2014 as compared to the unaudited consolidated net loss for the previous corresponding six months ended June 30, 2013. The larger loss was largely the result of (i) lower than expected demand for the Group's properties for sale as a result of PRC governmental measures to reduce demand for residential properties; and (ii) an impairment loss on residential properties as a result of the reduced demand.