The Board of directors of Hong Kong Resources Holdings Company Limited expected to record a loss for the six months ended December 31, 2012 as compared with a profit for the last financial period of six months ended December 31, 2011. The loss of the group for the six months ended December 31, 2012 was primarily attributable to worsening of the market conditions and business environment in the Mainland China during the period and reorganization of the business and closure of the loss making self-operated stores in the Mainland China, which resulted in an increase in associated expenses.