The board of directors Shanghai Zendai Property Ltd. announced to the shareholders and investors of the company that the Group is expected to record a significant loss for the six months ended June 30, 2014 as compared to a profit recorded for the 6 months ended June 30, 2013. Based on the preliminary review of the information currently available, such loss was mainly attributable to the following reasons: The absence of one off reversal of land appreciation tax of HKD 166 million recorded in the previous period; The increase in share of the net loss of associates and joint venture companies; A significant increase in finance cost due to increased borrowings; and A substantial decrease in turnover due to less properties were delivered.