The board of directors of Topsearch International Holdings Ltd. announced that the group is expected to record a loss for the six months ended June 30, 2013 whilst the group's unaudited consolidated interim results for the six months ended June 30, 2012 also recorded a loss notwithstanding the group's overall gross margin has been improved and its finance costs have been significantly reduced. Based on the analysis of the information currently available, the net loss of the group has been narrowed as compared to the same in the corresponding period in the year of 2012. The Board believes that the loss was mainly attributable to the group's reduced sales turnover; the increase in the group's selling expenses; and the exchange loss arising from the progressively appreciation in Renminbi in general.

The Board considers that the Group's financial position remains sound and the Group is capable of financing its operations by its own internal resources and available banking facilities.