The board of directors of Lerado Group (Holding) Company Limited informed the shareholders of the company and investors that, based on the information currently available, the unaudited consolidated loss attributable to owners of the company for the year ended 31 December 2014 is expected to increase significantly by over HKD 100 million when compared with the audited consolidated loss attributable to owners of the company for the year ended 31 December 2013. The increase in loss is primarily due to the dispute with the buyer in relation to the draft completion account for the disposal where the buyer has requested a significant downward adjustment be made to the consideration for the disposal. As a result of the dispute, the final consideration of the disposal is uncertain.

For the year ended 31 December 2014, the gain or loss on disposal is recognized only up to the amount calculated based on the portion of the consideration that is not in dispute. Accordingly, a loss on disposal of subsidiaries of over HKD 100 million was recognized for the year ended 31 December 2014.