The board of China Motion Telecom International Ltd. informed that based on a preliminary assessment of the unaudited consolidated management accounts of the group, it is expected that the group would record an increase in loss for the six months ended 30 September 2013 as compared with that of the corresponding period in 2012. During the six months ended 30 September 2013, the group reduced the sales of telecommunication equipment and products with low profit margin. This, together with the decrease in the promotion campaigns initiated by the shanghai operator, resulted in a significant decrease in the group's turnover whereas the gross profit remained relatively stable.

The expected increase in loss for the six months ended 30 September 2013 is mainly attributable to (i) an increase in legal and professional fees incurred for the Transactions; and (ii) the fact that no more income and profits were generated from the mobile communications services business as a result of the disposal of CMTHK in March 2013 under the MVNO Disposal Agreement, but the effects of which are partially offset by the absence of impairment loss of goodwill relating to the Retail Business.