The Board informed the shareholders of Legend Strategy International Holdings Group Company Limited and potential investors that the Group is expected to record a net loss (after taking into account the loss in conversion of the convertible notes) for the year ending 31 December 2013 as compared to a net profit for the corresponding period of 2012 (year of 2013 result was unaudited), primarily due to the following reasons: the record of the conversion of the convertible notes in an aggregate principal amount of HKD 30,600,000, which were converted into 36,000,000 new shares of the company at the initial conversion price of HKD 0.85 per conversion share in December of 2013. The conversion of the convertible notes is estimated to have a significant fair value loss; and The slowdown of business in hotel consultancy services due to the unstable economic situation in the PRC in the second half of 2013.