The board of directors of Kingwell Group Limited informed the shareholders of the company and potential investors that based on a preliminary assessment of the unaudited consolidated management accounts of the Group for the five months ended 30 November 2013 (the Relevant Period), the Group is expected to report a significantly lower revenue due to decrease in sales in property development business, and an increase in the loss as a result of a much small profit contribution from property development business, for the relevant period as compared with the corresponding period in year 2012.

The board currently anticipates that the operating results of the Group for December 2013 (the Remaining Period) will not be able to reverse the weak performance in the relevant period. Accordingly, it is expected that the loss for the period ending 31 December 2013 for the Group will increase as compared with the period ended 31 December 2012.