HKC (Holdings) Limited provided earnings guidance for the six months ended June 30, 2015. The board of directors of the company expected to record a larger loss for the six months ended 30 June 2015 as compared to the unaudited consolidated net loss for the previous corresponding six months ended 30 June 2014. The net loss of the Group for the six months ended 30 June 2015 would increase by about 250% compared with the net group loss recorded for the corresponding period ended 30 June 2014.

The larger loss is largely due to a decrease in the fair value for the investment properties under construction in Shanghai as pre-leasing market studies indicate that lease rates will be lower than initially expected given an expected oversupply in the Hongkou District; and an impairment loss on property held for sale in Shenyang as oversupply is resulting in lower than expected prices and profit margins for its units held for sale.